Used-car sales fell for the third straight month, but the mood among many dealers still seems to be a positive one, according to Tom Webb, who addressed the used retail market as part of his analysis surrounding the monthly Manheim Used Vehicle Index.

Webb, chief economist at Manheim, points to CNW Research data indicating that used retail unit sales dipped by more than 9 percent in August.

However, he tempers that news with this: “Nevertheless, we continue to hear positive comments from dealers that turn rates are good and net margins are strong.”

As a result of those healthy signs, dealers remain hungry — albeit “slightly more selective” — for used inventory that meets their needs, Webb said in the report.

“But, with new-vehicle sales so strong, keep in mind that for franchised dealers a lot of great inventory is literally being driven to their door every day in the form of trade-ins and lease turn-ins,” he added.

In fact, the 17.4 million new-vehicle SAAR last month was the strongest in eight years, Webb points out.   

And the additional lease turn-ins that Webb mentions certainly have a far-reaching impact on the used-car market, as Edmunds.com demonstrates in its Q2 Used Vehicle Market Report.

“Big increases in lease returns typically apply downward pressure on prices but create opportunities to certify and sell more CPO vehicles. Lease returns generally meet manufacturer's eligibility requirements for certification because of low mileage, condition and age,” the Edmunds report noted. “CPO sales command higher prices and minimize impacts to transaction prices.”

(Case in point: franchised dealers had average used-car transaction prices of $16,781 during the second quarter, which is the highest amount Edmunds said it has ever recorded.)

Speaking of certified pre-owned sales, that’s another positive sign in the used-car market.

August was the best month in the history of the CPO market, as dealers sold 222,675 certified vehicles, according to Autodata Corp. This beat the previous record — which was set in May — by more than 15,000 units.