2. percent percent percent percent percent
Delving more into used-car inventory throughout the market (including franchised dealers, independents and private-party sales),
Spinella emphasized that it’s particularly hard to find late-model units.
“Lack of late-model inventory continues to haunt the used-car market,” he said. “Sales of vehicles one to three years old were off
from 2 to 5 percent on a share of sales basis (in November).”
Interestingly enough, although younger inventory was in short supply, franchised dealers saw a 4.75-percent year-over-year hike in
the value of the used vehicles they sold last month ($10.21 billion). Independents, however, saw the value of their sales ($5.85
billion) fall 5.87 percent.
The value in casual sales ($7.77 billion) jumped 11.18 percent.
The industry overall saw value of used sales jump 3.83 percent to $23.83 billion in what Spinella called a “good month.”
Annual Used Sales
Looking at full-year projections for used sales as 2011 is about to wrap up, Spinella is forecasting that the market is likely to top
38.7 million used sales for the year, which would be the strongest total in four years.
The last time the used market was this strong was 2007, when 41.4 million units were sold.
3. “Franchised dealers are set to have a banner year with sales up 8.1 percent versus 2010,” Spinella commented. “Independents
should finish the year on a 5.8-percent positive note, while private party sales will pretty much match 2010 with only a 0.3-percent
increase.”
Pricing
Moving along, Spinella also took a look at pricing. He found that the average transaction price for franchised dealers this December
is $10,547, up 0.78 percent year-over-year and down 1 percent from November. For independents, the average transaction price
this month is $9,384, up 8.7 percent year-over-year and down 0.71 percent month-over-month.
“Dealers are getting a bit less for their vehicles than they did in November of this year, but are still ahead of the curve versus 2010,”
Spinella noted.
