The latest research shows that sales of used cars and light trucks in the U.S. grew strongly – up more than 13% for the month of July. About 4.5 million previously owned vehicles changed hands. That’s the best July since 2005, according to consultancy CNW Research in a report released this morning.
The number of used sales stands in stark contrast to predicted July new vehicles sales, which will be released tomorrow. The sale of new vehicles in the U.S. will be roughly 11.8 million units on an annual basis in July. This is the third straight month below the 12 million mark as the U.S. economy remains close to reentering a recession, if it hasn’t already. Worse, the July seasonally adjusted annualized rate (SAAR) at the retail level is predicted to come in at 9.6 million units, according to J.D. Power and Associates.
In a previous CNW report last month about 8% of the people who bought a used vehicle in June were trying to decide between purchasing a new or used car and elected for the older one. This means that approximately 360,000 new-vehicle sales went to older vehicles, according to CNW research. That’s two final assembly plants worth in just one month, and it doesn’t include supporting component parts plants at a time when unemployment is officially more than 9%.
During July, franchised dealers’ used-car operations were up 17.8% to 1.7 million units. Independent dealers showed a 10.7% increase to 1.7 million units. Private Party (casual and an unknown number deals that are actually part of underground economy activity) sales were up 11.6% to 1.2 million units. Total value of the vehicles sold in July topped $45.8 billion. Average transaction price slipped slightly from June to $10,193.
Detroit brands represented 62.3% of used vehicles sold in July with Asian brands’ share at 26.3%. European models came in at 11.4%. (See New Vehicles Overpriced, Sending Sales to Used?)
