BANDON, Ore. -

Franchised dealers may be bringing in the dough on used units this month, but that isn’t the story for independents, according to CNW Research.

The average transaction price for used cars at franchised dealerships “kept its head above water compared to the same month of 2011. Independents weren’t so lucky,” CNW president Art Spinella shared in the Retail Automotive Summary for August.

In fact, if consumers were visiting independent stores for their next car, dealers were already asking 3.2 percent less than they were in August 2011. Transaction prices for these same dealers dropped nearly 7 percent year-over-year in August.

On the other hand, franchised dealers were asking about 5.6 percent more for their vehicles “but had to settle for a 1.1-percent gain in transaction prices,” Spinella added.

What are some of the factors behind the decline in transaction prices at independent dealerships?

Spinellas cited increased consumer use of third-party sites, as well as a rising awareness of what a used vehicle “should” sell for.
 
“Because of online resources such as KBB, AutoTrader and the like, consumers are becoming increasingly aware of what a used-vehicle should (in their minds) sell for,” Spinella stated.

“They are driving a harder bargain and finding dealers, who are seeing inventories beginning to grow, willing to make a deal,” he added.

And Spinella contends that if independent dealers are going to keep up with their franchised counterparts, they will be working double-time.
    
“For independent dealers, there are some serious trials on the horizon. Aside from increasing regulations from BHPH to signage, the marketing landscape is changing rapidly and in a way that will require expensive alterations in how indies reach potential customers,” he concluded.

CNW also provided the following chart to illustrate its results: