On the heels of a September boost in new-vehicle sales -- to the highest SAAR since before the 2008 collapse -- used-car sales to subprime buyers surged 78% to 923,230 vehicles sold, according to a new report from CNW Research.
Used-car buyers with credit scores below 550 jumped 86.7% in September compared with September 2011, while buy-here, pay-here dealers’ marketshare rose 33%. In addition, CNW found that the number of used-car buyers who obtained pre-approved loans rose 13.7%.
The year-over-year sales gain for used autos increased 8.8%, with 3.81 million units moving off independent and franchised lots, as well as through private-party transactions.
Compared with September 2011, used-car sales at franchised dealerships rose 12.5% to 1.34 million units, while sales at independent dealerships increased 13.6% to 1.3 million autos . Private-party sales dropped 2.9% to 838,369 during the same time period.
Average transaction prices on used cars fell across the three sales channels, with private-party prices dropping to $7,078 from $8,679 last year as independent dealers declined to $6,862 from $7,942. Franchise dealers' prices decreased to $12,285 from $13,191.