CARMEL, Ind. –
There’s a term that Tom Kontos had for January’s wholesale market that he doesn’t often get to chance to use.
And hey, let’s admit it, the word is actually kind of fun to say.
For those without Dictionary.com saved on your browser, the adjective form of the word means “divided into two branches,” according to the site.
In his latest video report, Kontos — chief economist at ADESA Analytical Services — found it to be an apt modifier, “because the wholesale was actually split into two markets: the market for trucks, which was strong, and the market for cars and crossovers, which was relatively soft.”
And he points to this as proof: Prices fell in every single car and crossover segment on a year-over-year basis in January. Meanwhile, prices climbed for all but one truck segment (minivans), he said.
Low gas prices continued to push truck values, as did the fact that both supply for and cash incentives on trucks have come down, Kontos said in the video. Meanwhile, supply and dealer discounting on cars and crossovers has been higher.
The full Kontos Kommentary video can be viewed above or at blog.adesa.com/video-kontos-kommentary-for-january-2016.