Here is the current used vehicle market conditions and outlook:

Summary

Wholesale used vehicle prices fell sequentially and on a year-over-year basis in February, supporting the outlook expressed in last month’s commentary that “one can expect wholesale prices to resume the general softening pattern that began around mid-2012 and that was interrupted by Superstorm Sandy.”

Details

According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class¹, wholesale used vehicle prices in wholesale used vehicle prices in February averaged $9,752 – down 2.8% compared to January and 1.2% relative to February 2012. The only segment that showed a month-over-month average price increase in February was Mini SUVs, which showed a 1.9% rise.

Prices for used vehicles remarketed by manufacturers were up 1.0% year-over-year, tapering considerably from last month’s 7.7% year-over-year increase. Despite this tapering, off-rental program units are continuing to show price strength. Prices for fleet/lease consignors were flat year-over-year. Prices fell 4.5% year-over-year for dealer consignors. Prices were down on a month-over-month basis for all three seller groups.

Based on data from CNW Marketing/Research, retail used vehicle sales in February were up 11.6% year-over-year for franchised dealers and 4.4% for independent dealers. Similarly, February sales of certified used vehicles were up 5.1% versus prior-year, based on data from Autodata.

¹ The analysis is based on nearly six million annual sales transactions from over 150 of the largest U.S. wholesale auto auctions, including those of ADESA as well as other auction companies. ADESA Analytical Services segregates these transactions to study trends by vehicle model class.

The views and analysis provided herein relate to the vehicle remarketing industry as a whole and may not relate directly to KAR Auction Services, Inc. The views and analysis are not the views of KAR Auction Services, its management or its subsidiaries; and their accuracy is not warranted. The statements contained in this report and statements that the company may make orally in connection with this report that are not historical facts are forward-looking statements. Words such as “should,” “may,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “bode”, “promises”, “likely to” and similar expressions identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the company’s Securities and Exchange Commission filings. The company does not undertake any obligation to update any forward-looking statements.