Spinella: Franchised dealers see transaction prices surge, Swapalease: Don’t blame leasing for dragging down prices November 6, 2014
Spinella_Art_ head shot

Franchised Used Vehicle Sales Up While Independents Were Down

Art Spinella
CNW Research

Retail used vehicle sales closed the month at 3,162,085, only up 0.29% vs. a year ago. The numbers also saw the typical seasonal pattern, dropping down from September by 16.9%. For the market segments, franchised dealers were up 2.2% to 1,213,741; independent dealers saw their volume drop more than 10% to 1,036,3177; and private party (casual) sales rose 12.5% to 885,372 units sold.

Here’s the CNW Research report on October used car sales

Franchised Dealers Saw Transaction Prices Rise 16% to $15,678:
Up 18.7% over year ago, due to growing inventory of late-model off-lease vehicles.

Number of Used Car Shoppers Slipped More than 6.8% from Year Ago:
Expect a strong January-March market as shoppers typically are two-to-three months away from actually making a purchase.

Less Fuel Efficient SUV Volumes Rose Nearly 10% Due to Lower Fuel Prices:
Not surprising that passenger car share of used sales slipped slightly by 1.8%.

Leasing is Not the Villain in Softening Used Car Prices

Scot Hall
Executive Vice President

Leasing has been taking the hit on softening used car prices by a number of industry authorities. While off-lease numbers will be increasing this year and beyond, the blame has been overstated. Trade-ins will be seeing nearly five times the return volume as leasing, with eight-to-nine million anticipated trade-ins and 2.1 million lease returns this year.

See what Swapalease has to say about the role of leasing

Leasing Will Account for Just 22.5% of Vehicles Coming Back in 2014:
Lease return vehicles (three years old) are actually helping to fuel the CPO recovery.

It’s Easy These Days to Point a Finger at Leasing with Falling Car Prices:
Simply because there has been great resurgence in lease deals since the recession.

With New Vehicle Sales Jumping from 10M to 16M there’s Resurgence All Around:
Difficult to congratulate leasing on fueling sales growth then also say it’s hurting industry
by forcing falling prices.
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