Report: Spike in Wholesale Volume Hurts Pre-Owned Values
Prices for used vehicles declined 4.2% in the first 10 months of 2019 while volume increased 5.2%, J.D. Power analysts say, a trend that has begun to affect the commercial market.

Average prices for pre-owned medium-duty cab-forward trucks such as the Isuzu N-Series declined by 15.2% in October, J.D. Power reports.
Photo courtesy Isuzu Commercial Truck of America Inc.
MCLEAN, Va. — J.D. Power analysts say the used vehicle market declined in October, charting a year-to-date drop of 4.2% in average prices. In the same period, wholesale volume grew by 5.2%. Highline volume increased 6.9% and mass-market inventories were up 4.9%.
“At an industry level, used vehicle prices are expected to finish out 2019 slightly up relative to 2018 — prices peaked in August and we expect they’ll continue to decline for the remaining months,” said David Paris, executive analyst at J.D. Power Valuation Services. “Incentives, used vehicle supply, and credit conditions are expected to apply downward pressure on used vehicle prices, but the impact of other factors, like gas and home prices and labor conditions, may support used vehicle prices in the near term.”
In a separate report, analysts reported that, despite the steady rate of depreciation in the auction channel, commercial trucks continued to lose value in the retail channel in October.
“Economists agree that the economy is negatively impacted to some degree by the uncertainty and inefficiency attributable to the tariff war.”
The medium duty truck market experienced sales of older, higher-mileage trucks, which has impacted pricing. The average price for a Class 3 or 4 cabover, for example, fell by 15.2% year-over-year in October —just over $2,100 per unit — and by a market-shaking 34.8% ($6,270) from September.
“Economists agree that the economy is negatively impacted to some degree by the uncertainty and inefficiency attributable to the tariff war. U.S. trade officials continue to comment optimistically about the progress of trade talks, but concrete action after a year and a half has been moderate at best,” said Chris Visser, commercial truck senior analyst at J.D. Power Valuation Services. “The presidential election of 2020 will further increase uncertainty and trepidation on the part of investors.”
To review J.D. Power’s November used vehicle market report, click here.
To review the firm’s November commercial truck report, click here.
Originally posted on F&I and Showroom
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