Dealers Pleased with Asking Prices, Lease Returns and Trade-ins Made for Strong Inventory August 27, 2014
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Dealers Make Up for Softening Wholesale with Strong Asking Prices

Art Spinella
President
CNW Research

Even with the wholesale used vehicle market seeing lower prices, dealers were able to get a higher percentage of their used-car asking prices in August. Franchised dealers received 96.9% of asking price compared to 95.4% a year ago. Independent dealers saw a good gain – nearly two percentage points from 94.7% to 96.6%. Sales volume slipped to under 4M units, down about 3%.

Here’s the CNW Research Retail Automotive Summary for August

Franchised and Independent Dealers Saw Used Volume Decrease in August:
Private Party (Casual) market had significant gain this month of around 7.7%.

More Inventory on Dealer Lots Causing Used Car Days’ Supply to Jump 3%:
That’s foretelling a continued decline in month-over-month retail prices.

Lease Residual Value Projections Trailing Actual Prices at End of Term:
One GM lease earlier this year carries residual 83.59% of what actual market is likely to pay for those vehicles.
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Franchised Dealers Carried Most of Gains in Used Vehicle Sales During Q2

Jessica Caldwell
Senior Analyst
Edmunds.com

Used vehicles sales in the second quarter of 2014 were up 1.6% units year-over-year, but down 5.4% from the first quarter. Franchised dealers carried most of the gains – sales were up 7.4% over last year and 2% over last quarter. Franchised dealers have seen greater inventory availability through lease returns and nearly half of new vehicle sales taking place with a trade-in.

Here’s Edmunds’ Q2 2014 Used Vehicle Market Report

Average Price for Used Vehicle Sold at Franchise Dealer Was $16, 781:
This average price in Q2 was up 4% year-over-year and 3.9% from last quarter.

Financing of Used Vehicles Shares Many Similarities with New Vehicle Market:
Both have seen a reduction in average interest rate but an increase in loan term lengths.

In Q2, Certified Pre-Owned Made up 20.4% of Franchise Dealer Used Sales:
While CPO has seen slight bump in share, there still is plenty of room for growth.
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