Used-Vehicle Inventory Continues to Tighten as Sales Surge in March

According to the Cox Automotive analysis of vAuto Live Market View data, used-vehicle inventory levels at the start of April have decreased both month over month and compared to early April 2024.

As April opened, the total supply of used vehicles on dealer lots – franchised and independent – across the U.S. was at 2.14 million units, down from the 2.18 million units at the start of March and down 1% from a year ago.

The retail used-vehicle sales pace increased month over month in the most recent 30-day period. Used retail sales reached 1.66 million vehicles in March, up 9% compared to the 1.52 million reported in February. March is typically the strongest month of the year for used-vehicle retail sales, and between tax refunds and tariff talks, this year was the strongest we have seen since 2021 and up 12% compared to last year. As of March 28, tax refunds, which are a key driver of the “Spring Bounce” the used-vehicle market often sees, averaged $3,170, up 4% year over year, with the total amount refunded up over 5%.  

USED-VEHICLE INVENTORY VOLUME AND DAYS’ SUPPLY

The Cox Automotive days’ supply is based on the estimated daily retail sales rate for the most recent 30-day period. Used vehicles had 39 days’ supply at the start of April, down four days from the upwardly revised level at the beginning of March and down five days compared to the same time last year. Days’ supply is the tightest since 2021 for this time of year and remains down nearly two days compared to 2019 levels.

March saw the first month-over-month increase in used retail prices this year. The average used-vehicle listing price was $25,180, up from the revised $25,011 at the start of March and now down 1% from a year earlier.

AVERAGE USED-VEHICLE LISTING PRICE

Affordability remains challenging for consumers, and used-vehicle supply is more constrained at lower price points. Used cars below $15,000 continue to show low availability, which is now the lowest it has been since 2021, with only 28 days’ supply, seven days lower than the same time last year, and 11 days below the overall industry average. The top five sellers of the month were listed at an average price of $23,778, about 6% below the average listing price for all vehicles sold. Once again, Ford, Chevrolet, Toyota, Honda and Nissan were the top-selling brands, accounting for 51% of all used vehicles sold.

Scott Vanner

Manager of Economic and Industry Insights

Scott Vanner is a manager of Economic and Industry Insights at Cox Automotive, which works to find actionable insights for the industry posed by Cox Automotive clients. Scott works with the Sales, Finance, and Data Science organizations and creates innovative solutions often combining proprietary data from other Cox Automotive brands. Scott joined Cox Automotive in 2022.