While the days’ supply level hit a year-high, a trend CNW Research spotted at both franchised and independent dealerships indicates October used-vehicle prices continued to decline both month-over-month and year-over-year.

In the opening days of this month, CNW president Art Spinella determined franchised dealerships were asking an average of $11,419 for used models, off 0.34 percent versus September but up 0.22 percent compared to the same month a year ago.

However, as far as actual transaction price — excluding add-ons and financing costs — Spinella calculated the price paid was down 3.6 percent versus last year and off 4.2 percent compared to September.

CNW went on to mention that independents dealers were worse off, with asking prices down nearly 5 percent compared to last year and 3 percent versus last month with transaction prices softening 7.4 percent and 6 percent respectively.

“Internet sales continue to be strong, however with 27 percent of those cars offered online finding buyers within 30 days,” Spinella said.

While vehicles promoted online appear to be turning quickly, CNW discovered the days’ supply continues to climb. The firm pegged this month’s level at the highest point so far this year — 50.37 days. Twice this year, January and April, the supply level dipped near 44 days, according to CNW’s analysis.

Nonetheless, an element that is helping to spark sales volume even if prices are softening is the rise in subprime approvals.

CNW said loan approvals for customers with less-than-stellar credit who are buying both new and used models are 47.8 percent higher compared to October of last year.

In September, analysts found the year-over-year increase came in at 62.5 percent.

The firm explained the ascent from the lowest point of the recent recession is striking. In January 2010, CNW said, barely 27 percent of those getting an auto loan had a FICO score below 670.

“That has risen dramatically in the past few months and now stands at around 42 percent,” Spinella said.

While Spinella noted the climb in subprime approvals, the home situation for some of these potential buyers is a bit uncertain.

CNW pointed out the share of disposable household income that is now being spent on necessities is once again on the rise. In January, it stood at 36.8 percent, and the firm's October survey determined the level to be 38.6 percent.

“The most important of the major categories — food prices, gas prices and the ability to meet day-to-day needs — are significantly higher than a year ago,” Spinella said. “In both cases, those surveyed said these were the key items that are most likely to drive other spending decisions."

And with the potential buyers in the worst economic shape possibly heading to a buy-here, pay-here dealer, CNW revised its long-term used-vehicle sales projections because of new regulations passed in the Golden State earlier this year. A complete recap of what happened in California can be found here.

CNW projected that used-vehicle sales will be 41 million in 2013 and 41.25 million a year later.

“These projections are lower than previously reported because of the recently enacted buy-here, pay-here laws in California. We fully expect many of those regulations will spread to other states and dampen sales somewhat,” Spinella said.