BANDON, Ore. -

Fueled by significant turn increases for vehicles 5 years old and newer as well as financing to subprime borrowers, the used-vehicle industry closed the last month of the third quarter with 4.3 percent sales gain.

CNW Research determined September contained more than 3.8 million used-vehicle sales among turns at franchised and independent dealers and private-party transactions.

While that figure represented a year-over-year gain, CNW acknowledged September’s sales reading remained basically unchanged compared to August.

Analysts found that franchised dealers fared best in the used-vehicle space last month as those stores generated a 6.6-percent rise in units sales and gained market share both on a year-over-year and month-over-month basis.

CNW indicated independent dealers turned more units in September versus a year ago as sales ticked up by 2.4 percent. However, analysts found that independent stores lost market share last month, dipping from 34 percent to 33.4 percent.

The firm found that September’s private-party sales rose by about 3.2 percent versus a year ago, but they trailed August’s figure by 10.6 percent.

No matter where the sale took place last month, CNW noticed the average transaction price climbed nearly 18.5 percent in September compared to a year earlier. But the prices trailed August's figures by 1.2 percent.

“The year-over-year gain is primarily due to improved inventory of younger vehicles including off-lease models,” CNW president Art Spinella said.

“Independents, however, saw their transaction prices gain 1.7 percent versus year ago and trail August by 0.11 percent,” Spinella added.

Spinella computed that the total value of used vehicles sold in September came in at $40.86 billion, marking a 16.9-percent increase above the same month last year but down by about a third of a percent compared to August.

In what should portend into another great month for certified used-vehicle sales, CNW broke down the September sales increases based on vehicle age:

—1 year old: Up 11.06 percent

—2 years old: Up 21.54 percent

—3 years old: Up 12.15 percent

—4 years old: Up 9.25 percent

—5 years old: Up 13.58 percent

Of the kinds of vehicles turned in September, CNW mentioned the trends mirrored what’s happening on the new-car side. Trucks increased its share of total used sales by climbing 9.4 percent versus year ago and boosting the segment’s share from 47.2 percent to 51.7 percent.

The firm noted SUVs also made significant increases in September compared to year ago, jumping 18.24 percent and representing 8.3 percent of all used sales versus 7.3 percent a year ago.

Finally, CNW pointed out the total number of used-vehicle shoppers slipped to 8.52 million last month from 9.77 million in September of last year. That drop-off represented a 16.1-percent decline.

On a shoppers-to-buyers ratio, CNW calculated there were 2.24 shoppers for each used-vehicle sold in September, down 16.3 percent versus a year ago but up 0.2 percent compared to August.

September’s Subprime Used Sales Spike 31 Percent

Subprime auto finance companies must not be taking their collective foot too much off of the originating pedal based on the amount of used-vehicle paper CNW Research found to be written in September.

During a month that contained more than 3.8 million used-vehicle sales among turns at franchised and independent dealers and private-party transactions, CNW indicated the number of subprime buyers in September “skyrocketed” by 31.0 percent compared to the same month in 2013. The firm noted the September reading also jumped nearly 2 percent versus August of this year.

And business wasn’t just busy at finance companies taking in subprime paper. CNW highlighted that buy-here, pay-here dealers saw an 18-percent gain in unit sales during September versus a year ago.

Furthermore, CNW mentioned subprime purchasers with FICO scores below 550 rose 27 percent year-over-year in September and represented nearly 19.3 percent of total used sales during the month. That credit segment produced a 21.9-percent gain over last year and a 5.6-percent increase over August of this year.

All told, CNW determined 69.1 percent of all used-vehicle transactions in September had some kind of financing, up just slightly from the year-ago figure of 69 percent. Analysts found the number of pre-approved loans climbed 19.4 percent versus last September and 3.5 percent versus August.