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
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.

Franchised Dealers Carried Most of Gains in Used Vehicle Sales During Q2

Jessica Caldwell
Senior Analyst

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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