Wholesale used-vehicle prices continued to skid in April, with prices in every car and light-truck segment down sharply from a year ago.
Tom Kontos, vice president of ADESA Corp.'s Industry Relations & Analytical Services, says the average wholesale used-vehicle price in April was $8,994, down 8.3 percent from the April 2002 average price of $9,812. He places much of the blame on new-vehicle incentives.
"High new-car incentives continue to erode the value of used vehicles - especially late-model (three model years and less) used vehicles that are most comparable to new cars," Kontos says. The used-vehicle "spring market, which came in strong and early in 2002, has been mild and late in 2003."
While year-ago prices have suffered all year, February and March 2003 average prices were higher than the previous months. That was not the case in April. April's average price was 1.9percent below the March 2003 average of $9,166.
Year-ago prices in several truck segments suffered double-digit declines in April.