Average wholesale prices in December softened on a year-over-year basis for the second month in a row and for the seventh time in 2018, supporting our expectation of general price softening due to supply growth.

Supply growth is increasingly concentrated in the truck segments, which consequently saw greater price softening in December than did cars.  On a month-over-month basis, rising car prices more than offset declining truck prices, allowing a modest increase in overall wholesale prices.

Auction prices for off-lease units were another major bright spot, as upstream remarketing continues to be effective in distributing supply across multiple channels.  On the demand side, CPO sales were strong in December and helped set another annual sales record.

Watch my December Kontos Kommentary below:

To read the entire Kontos Kommentary used vehicle market outlook for December 2018, visit http://adesa.com/kontos-kommentary.