BANDON, Ore. -

CNW Research said August used-vehicle sales slipped 3.3 percent versus the same month a year ago, but the drop had nothing to do with activity at franchised or independent dealerships.

So what triggered the August drop? CNW president Art Spinella attributed the decline to a softer private-party market, which tumbled down more than 18 percent last month.

Meanwhile, CNW noticed used-vehicle sales at franchised dealerships climbed 5.7 percent in August, totaling 1,431,489 units. Sales by independents ticked up just a shade below 1 percent, totaling 1,424,219 vehicles.

However, private party sales constituted 957,066 transactions, halting a string of three consecutive months where this segment of the used-vehicle market generated at least 1.1 million sales.

Spinella thinks the dip in private-party sales could be a benefit to dealers, even though it softened the overall August sales total, which came in at  3,812,774 — the first time since April it has been below 4 million.

“The decline in private party sales can be traced in large part to a tightening of credit for casual sales,” Spinella indicated.

“Put simply, it’s increasingly difficult to obtain an auto loan for person-to-person car sales,” he continued. “This forces many private party used-car buyers to rely on cash to complete the transaction.

"A growing percentage of consumers are reluctant to part with savings to make a used-car purchase and turn to either  franchised or independent dealers where loans are easier to obtain,” Spinella went on to say.

While August sales by franchised and independent dealers both advanced year-over-year, CNW noted all stores watched their sales sink by double digits from July.

“The final tally for August was significantly below the first 10-day track for the month,” Spinella acknowledged. “As of Aug. 10, the used-car industry was looking at total sales in excess of 4 million units.”

CNW had to go back to 2007 to find a string of more than four months in a row when the industry saw more than 4 million used sales. From May through September of that year, used sales consisted of at least 4.1 million, including June’s total of 4,758,301 — the highest level in the past five years.