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
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →