BANDON, Ore., and DETROIT — When CNW Research crunched the
September used-vehicle sales numbers this week, analysts pinpointed just how
many more subprime buyers made a purchase last month as compared to a year ago.

CNW indicated the amount of subprime buyers spiked by 78
percent to 923,230.

Analysts noticed buyers with FICO scores below 550 jumped
86.7 percent in September versus to the same month last year.

CNW also found that the market share held by buy-here,
pay-here dealers jumped by 33 percent year-over-year.

Furthermore, the firm indicated there was a 13.7-percent
increase in the number of buyers who received a pre-approved loan before
purchasing a used vehicle.

As the amount of purchasers with less-than-perfect credit
histories rose, CNW acknowledged transaction prices softened last month.
Nevertheless, CNW determined that September represented a solid year-over-year
used-vehicle sales gain as the total represented an 8.76-percent rise.

All told, CNW tabulated that the used-vehicle sales totaled
3.81 million units in September, a figure representing what both franchised and
independent dealers turned during the month, as well as private-party
transactions.

The firm broke down September's total and compared it to the
same month last year, determining:

—Franchised dealer used sales: 1.34 million versus 1,19
million, up 12.46 percent.

—Independent dealer used sales: 1.33 million versus 1.17
million, up 13.56 percent.

—Private-party sales: 838,889 versus 863,369, down 2.89
percent.

On a share-of-total-sales basis, CNW indicated that
franchised dealers took 38.12 percent (up from 36.86 percent a year ago).
Independent dealers held 37.99 percent (up from 36.39 percent a year ago) with
private-party sales accounting for 23.89 percent (26.76 percent a year ago).

Looking at those average transaction prices, the figure at
franchised dealers slid a bit year-over-year as CNW noted it ticked down 6.87
from $13,191 to $12,285.

At independent lots, the firm said transaction prices
softened by an even greater rate — 13.6 percent — as deals went from $7,942 to
$6,862.

Even more of a decrease was private-party transaction
prices, which dropped by 17.49 percent last month to $7,078 from $8,679.

CNW computed that the total value of used sales in September
came in at $31.53 billion, down 2.79 percent from last year's figure of $32.44
billion.

Finally, of the vehicles sold last month, CNW discovered the
brand share held by domestic OEMs fell 4.8 percent to 60.1 percent while Asian
brands jumped 24.5 percent to 32.99 percent of sales with European models
slipping by a third to 6.9 percent.

Subprime Impact on New-Vehicle Sales

The growth within the subprime space is growing within the
new-vehicle side of the industry, too.

Despite sluggish economic growth, new data from PwC's
Autofacts pointed toward new-vehicle sales reaching 14.5 million in the U.S.
this year while moderately increasing in 2013.

PwC's Autofacts attributes this growth to factors including
the return of automotive financing and subprime loans, coupled with pent-up
demand from an estimated 11 million consumers who have deferred their purchases
of new vehicles.

"There is still room for growth in the light vehicle auto
market, and opportunities exist within the profitable subprime market," said
Kevin Roberts, lead North American analyst for PwC's Autofacts.

"Subprime consumers make up more than 35 percent of the U.S.
population, but only 25 percent of new auto loans," Roberts continued.

"Outside of contraction caused by euro zone issues, the U.S.
auto market should be well-positioned for further growth as sales return to
normal and more consumers find readily available financing," he went on to say.