CNW: Independents Turn Things Around; Used Market to Hit Nearly 3.5M Sales This Month
Independent dealers are having one of their best months in quite some time, and the overall used-vehicle market is likely to improve more than 8 percent in September, according to CNW Research.
It is expected that used sales will reach 3.49 million units for the month, which would compare to 3.23 million used sales in September 2011, according to CNW.
Independents — which have struggled as of late — are projected to see their sales climb nearly 10 percent this month at 1.29 million vehicles sold.
“September got off to a strong used-sales start that continued throughout the first 20 days and put the industry on a path to an 8-plus percent gain,” explained CNW president Art Spinella.
“For the first time in months, independent dealers are looking at a significant year-over-year improvement thanks to inventories and supply becoming more stable and improvements in inventory make-up,” he added.
And as sister publication SubPrime Auto Finance News reported Monday, an uptick in subprime loan approvals are helping to push used-car sales for all dealers.
Breaking its expectations down further, CNW noted that franchised dealers are projected to move 1.33 million used units this month (up 11.7 percent year-over-year) and predicts there will be 873,005 casual sales (up 1.1 percent).
Looking forward, Spinella noted: “Expect continued strong showings for independent dealers over the coming quarter as long as the supply issues continue to improve, and new-car dealers have solid trade-in volumes.
“There was a slight weeding-out process over the summer eliminating some weaker Indies,” he continued. “CNW expects the loss of 200 to 500 used-car outlets by the end of the year.”