BANDON, Ore.
— An influx of
new, independent dealerships could help used-car sales reach four million units
in 2009, according to CNW Research.
The Bandon, Ore.-based research firm found that after the
first 15 days of July, sales of used vehicles increased 6.2 percent, or 3.9
million vehicles, compared to the year-ago period.
The improvement in used-vehicle sales is due to an influx of
new, independent dealerships which recorded a 16.4 percent surge in volume compared
to the year-ago period. Franchised dealers achieved a modest improvement of 2.7
percent in sales, while private sales decreased by 0.2 percent.
Independent dealers increased year-to-date sales by 3.9
percent, or 7.2 million units, while franchised dealers boosted overall sales
by 3.1 percent, or 7.8 million units. Private party sales fell sharply by 10.9
percent, or 6.2 million units. Overall, used-vehicle sales totaled 21.3 million
units, a drop of 1.2 percent compared to the year-ago period.
The improvement in used-car sales is partly due to the
closures of franchised dealerships.
“Some of the smaller GM and Chrysler stores have
reconfigured themselves as used-car outlets. Simultaneously, franchised
dealership salespeople and managers cut during the past year for lack of
new-car sales have launched their own independent stores,” wrote CNW’s Art
Spinella.
The improvement of used-car sales at franchised and
independent dealers coincides with an increase in retail transaction prices.
During the first half of July, the average retail price for used cars from
franchised dealerships was $10,160, a 9 percent increase from the $9,318 recorded
in the year-ago period, and a modest 0.63 percent gain over June.
Average retail prices for a used-vehicle at independent
dealerships reached $8,188 in July, a 5.03 percent increase from the $7,796
recorded in the year-ago period, and a nearly 1 percent improvement over June.
“With pent-up demand putting future buyers in the vault, and
credit trickling back for private party sales, the industry remains on track to
a near 40-million unit year,” Spinella wrote. “While a long way from the
volumes registered since 2000, it is clearly a marked improvement from the 36
million of 2008.”