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BANDON, Ore. — Subprime auto loan approvals jumped by at
least 40 percent during each of the last four months of 2012, according to data
produced by CNW Research.

December's year-over-year climb came in at 43.2 percent. In
November, the jump in subprime loan approvals was 44.6 percent while the
industry produced a 47.8-percent rise in October. September marked the
strongest spike of the year-closing string at 62.5 percent.

When 2012 full-year used-vehicle sales are tallied, CNW expects
the sum to be a five-year high.

Along with the subprime loan analysis, the firm's Retail
Automotive Summary said the industry's final used sales count will likely reach
40.53 million units, which would be a 4.5-percent year-over-year hike.

What's more, this would be the best yearly total since 2007,
when 41.42 million used cars were sold. It would also end a four-year streak of
used sales coming in under 40 million each year.

Franchised dealers are projected to have moved about 15
million used units in 2012 for an 8.3-percent year-over-year gain, with
independents up 1.8 percent with 14.02 million used sales. CNW is forecasting
full-year private-party sales to hit 11.52 million, a 3-percent rise.

As for December's expected results, CNW is calling for 3.15
million used sales during the month, which would be on par (up 0.3 percent)
with December 2011 figures.

However, this sum includes private-party sales, which are
forecasted to fall 28.1 percent year-over-year at 860,030 units. Dealers,
though, appear to have fared much better.

Franchised stores are expected to bring in 1.15 million used
sales (up 17.3 percent from December 2011), and independents are projected to
move 1.14 million units for an 18.2-percent gain.

In the analysis, CNW president Art Spinella addressed why
private-party sales will fail to hit the 900,000 mark after reaching 1.2
million sales in December 2011.

"Major reason: Solid trade-in values from dealers and a
growing number of those who are undecided about buying new or used falling onto
the new-car side," Spinella said.

"Outlook for 2013? Expect private-party sales to remain soft
with franchised dealers grabbing a larger overall share over total used sales —
perhaps as much as 40 percent, depending on the strength of the new-car market,"
he went on to say.


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