BANDON, Ore. — CNW Market Research reported today that a late surge in used-car shoppers and buyers in the franchised and private party channels has put the used-car market well above the firm’s mid-month projections, up 2.45 percent to more than 4.49 million units.
Franchised dealers are expected to be up 3.35 percent vs. a year ago, according to the market research firm, while independents are expected to realize a 3.82 percent increase from the same month last year. Private party sales are expected to inch down 0.46 percent vs. one year ago.
Total value of used cars sold, according to CNW, slipped 3.2 percent to $40.2 billion compared to last year’s $41.5 billion because of lower transaction prices, which fell 5.5 percent across all three channels to $8,955.
The firm also noted a 3.8 increase in the number of used-vehicle shoppers last month compared to June 2012. Shoppers visiting franchised dealers increase 3.77 percent, while shoppers visiting independent operations fell 26.81 percent. Private party shoppers were up 16.68 percent.
“The typical used-car buyer searched for a vehicle for 3.9 weeks before acquisition, down 10.64 percent from last years’ 4.4 weeks,” CNW report in an e-mail distributed today.
The firm also noted a 7.4 percent increase in the number of used vehicle financed vs. a year ago. Of the 3 million vehicles financed, there was a 20.6 percent decline in the number of buyers who had a pre-approved auto loan when making their vehicle acquisition.
The number of subprime buyers also skyrocketed by nearly 35.6 percent to 1.019 million individuals from a year ago. According to CNW, customers that fall into the deep subprime credit tier increased 41.26 percent vs. a year ago.
“Shoppers are visiting dealerships in large numbers because of the Internet, with a 131 percent increase versus last year,” CNW’s report concluded.