After Q2 Gains, Analysts Gauge Progress of Used Sales in July
Several of the nation’s publicly traded dealership groups have released their second-quarter performance reports in recent days and a common theme has been the strength in used-vehicle sales during the period.
And for the overall used market — including independent dealers and casual sales, as well as franchised shops — CNW Research recently reported that there was a 1.4-percent increase in sales during the quarter.
How July will shake out, however, isn’t so clear.
TrueCar is forecasting a 5.7-percent year-over-year decline in used sales for the industry, predicting a total sum of 4.24 million. This would be a 3.3-percent decrease from June, the company said.
Meanwhile, Edmunds.com is calling for a “relatively flat” used market versus last month’s. Specifically, it is projecting 3.2 million used sales for a seasonally adjusted annualized rate of 36.4 million. Edmunds data cites June’s numbers at 2.9 million used sales and a 36.5 million SAAR.
CNW, however, believes used-vehicle sales will rise 1 percent year-over-year and hit 4.54 million this month.
And in yet another look into the used market, Kelley Blue Book points out a downward trend in the used sector in recent months. Its analysts note that high prices in the late-model segment against more “affordable” transaction prices in the new-car market have led many customers to buy new instead.
“Used-vehicle registrations have declined year-over-year during the past three months, while new-car sales show solid gains,” they added.