BANDON, Ore., and GAINESVILLE, Ga. -

As used vehicle days’ supply continues to grow — sitting at 50.46 during the first few weeks of the month   —  transaction prices for franchised dealers in May are dropping a bit.

CNW said in the Retail Automotive Summary released Monday afternoon that in the opening weeks of this month, average franchised transaction prices ($10,958) declined 2.5 percent year-over-year and 0.21 percent when compared to April.

CNW also explained that this number is “somewhat offset by the fact their asking prices ($11,507) were down 3.6 percent compared to a year ago.”

On the other hand, independent dealerships were asking more than they were during the same period of 2012, a fact that is paying off as they close sales this month.

So far this month, independents experienced a 4-percent increase in transaction prices ($9,576).

That said, this number marks a 0.89-percent decline from April.

Dips in transaction prices may not be much of a concern for dealers, though, since used prices at auction are falling, as well.

After a strong spring, Black Book’s Ricky Beggs explained that a few used-car segments “have resumed their price declines.

“Several of the car segments have seen a noticeable drop in prices following the spring buying season due to a variety of factors that are economy- and demand-driven,” said Beggs. “With the buying season over, shoppers have turned to service vehicles like trucks, which are in demand from economy-driven construction projects.”

Highlighting some of the more significant drops, entry midsize car prices have declined 2.07 percent in May after prices remaining relatively consistent through April.

Entry-level cars have also seen a decline, dropping by 1.66 percent so far, following a 0.71-percent increase in April, Beggs reported.

Compact cars have dropped 1.05 percent this month after rising by 0.55 percent in April

 

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