As used prices fell 2.5 percent last month, auction volume was on the way up, perhaps playing a role in the continuing depreciation being seen in the auction lanes.
According to the latest Guidelines report from NADA Used Car Guide, auction volumes of used cars up to 8 years old reached almost 317,000 units in June, which is up 1 percent from May’s total.
The increase spiked year-to-date volume up to a total of 2.07 million units, which according to NADA UCG data is up 7 percent from the same period of 2014.
And according to the latest Economic Dashboard prepared by NAAA chief economist Ira Silver, June’s high represented an 8.3-percent year-over-year climb in auction value, coming in as the largest year-over-year gain in auction volume for any month since January, when volume jumped 10.7 percent.
Taking a look at June’s auction volume statistics cited in the Guidelinesreport, NADA Used Car Guide explained the “on-going sell down” of rental programs contributed to a 9-percent drop in 2014 model-year volume last month. In June, volume for last year’s models came in at 51,600 units for a 26-percent drop from the 70,000 units pinnacle that was reached this past March.
On the other hand, volume for the 2015 model-year vehicles continued to ramp up considerable, rising by a whopping 44 percent from May to a total of 17,400 units.
As for the 2012 and 2013 model years, volume stayed relatively consistent at 59,000 and 58,000 units, respectively.
Lastly, NADA UCG pointed out a trend that is likely a reflection of a spike in trade-ins stemming from May’s strong new sales results.
Auction volume for 2007-2010 model years was up for the first time since March last month, increasing by an average of 2 percent to a total of 106,000.
Sources: NADA, Auto Remarketing.