CNW: Used Sales Soar Sequentially, Climb Modestly from Year-Ago
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BANDON, Ore. –
While used-car sales last month jumped more than 40 percent from March, the year-over-year change was much more moderate, according to CNW Research.
The firm said Tuesday that there were 3.79 million used sales in April, which is a 40.2-percent month-over-month rise and a 7-percent hike from April 2011.
While the 40.2-percent month-over-month upswing may seem staggering, CNW explained that this kind of gain is actually quite typical for this time of year.
“The big April-versus-March increase is normal as weather conditions and refund checks nudge consumers to buy a long-needed used vehicle,” explained CNW president Art Spinella.
Breaking it down, franchised dealers sold 1.37 million used units in April, essentially static from a year ago. Independents moved 1.24 million used vehicles, down 8.0 percent. Private-party sales climbed 18.4 percent to 1.19 million.
Looking at pricing, Spinella said the average price of a used vehicle from a franchised dealer climbed from $11,462 in April 2011 to $12,293 last month.
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For independents, it climbed from $9,913 to $10,289. Prices in private-party sales dipped from $8,787 to $8,538.
Offering some additional analysis, Spinella had this to say: “One issue that may or may not be a trend: The average FICO score of those buying a used car rose for the first time in a year.”
Specifically, the average FICO score of a used-car buyer last month was 624.83. This is up from 617.88 in March. The average score for February was 619.02, following an average of 619.59 in January.
“Some financial institutions are tightening credit criteria a tad for used-car buyers, especially those looking at vehicles 8 years old and older,” he added.
