Weakening sales this month have triggered increased lot inventory, according to CNW Research’s monthly Retail Automotive Summary.
Despite dealers being able to get a higher-than-average percentage of their asking prices on used cars so far this month, the higher stocks of vehicles have led to the used-car days’ supply going up 3 percent, a trend the report says foreshadows a decrease in month-over-month retail prices.
Franchised and independent dealers are both experiencing increases asking prices, according to Art Spinella, CNW Research’s president.
“Franchised dealers received 96.9 percent of asking price compared to 95.4 percent a year ago,” Spinella said in the report. “Independent dealers were up nearly 2 percentage points from 94.7 percent to 96.6 percent.”
Spinella also pointed out that, although the private party market is experiencing a 7.7-percent increase in sales this month, dealer sales are down.
Specifically, franchised dealers are projected to sell 1.47 million used vehicles, a 5.1-percent year-over-year decrease. Independents are forecasted to move 1.26 million vehicles, a 9.5-percent decrease from August 2013.
CNW predicts 1.23 million casual sales, a 7.7-percent hike.
All told, there will likely be 3.96 million used cars sold in August, down 3-percent from the year-ago sum.
The expected year-to-date sum is 28.80 million, essentially static from the eight-month sum in 2013.