Used Car Prices Still Soft, but Higher Than Year Ago

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CNW Research and Pres­i­dent Art Spinella share an overview of used vehi­cle trends:

• Ver­sus Decem­ber ‘12, fran­chised dealer used prices (exclud­ing taxes, fees, inter­est rates, etc.) are up 2.8 per­cent and 1.3 per­cent vs. November.

• For inde­pen­dent deal­ers, the gains were more dra­matic, up 8.7 per­cent vs. year ago and 2.6 per­cent vs. November.

• Coun­ter­ing these gains are increases in used-vehicle days’ sup­ply which could pres­sure deal­ers to move inven­tory faster by low­er­ing prices or at least being more flex­i­ble on ask­ing prices and trade ins.

• The desire and/or need for buy­ing a used vehi­cle con­tin­ues to build the basis for future sales.

• The early Decem­ber data sug­gest a nine per­cent increase in the num­ber of peo­ple who will buy a used car or truck soon.

• The fourth quar­ter saw an 8 per­cent increase in poten­tial future customers.

• The num­ber of months these con­sumers say they are away from an acqui­si­tion fell by 24 per­cent to 2.2 months in Decem­ber, clearly indi­cat­ing a good start to the 2014 used-sales market.

• Of those who post­poned an acqui­si­tion ear­lier this year, 93 per­cent have made a used purchase.

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