Industry experts report that used prices remain stagnant for both independent and franchised dealers, with prices dropping to rates quite a bit lower than seen in 2012.

CNW Research president Art Spinella said used-vehicle prices remain stagnant on both a retail and wholesale level.

So far this month, prices are down 2.73 percent for franchised dealers, compared to January of last year and flat compared to December. The average transaction price for franchised dealers this January sits at $10,558.

And the story for independents paint a “bit more depressing” picture, said Spinella.

For independents, transaction prices are off 5.7 percent compared to a year ago and up only slightly — 0.88 percent — compared to December. The average transaction price for independent dealers this month sits at $9,158.

Why the decline?

Spinella contributed a part of the “price problem” to the growing supply of vehicles.

“CNW estimates that the days’ supply for January will be around 49.9 days compared to 44.2 days in January of last year — a 13-percent increase,” Spinella said in the lastest Automotive Retail Summary from CNW.

Trucks’ days’ supply is running around 48.6 days while passenger cars are at 51.2 days.  
 

Sarah Rubenoff can be reached at srubenoff@autoremarketing.com. Continue the conversation with Auto Remarketing on both LinkedIn and Twitter.