Retail used-vehicle sales increased modestly from June in July, bucking typical seasonal trends as inventory edged higher, according to Cox Automotive’s analysis of vAuto Live Market View data. The used-vehicle market otherwise remained stable in July, with average listing prices essentially unchanged for a second consecutive month at $27,028, though still 6% higher than a year ago.
2.15M
Total Inventory
46
Days’ Supply
$27,028
Average Listing Price
Inventory Edges Higher but Remains Below Pre-pandemic Levels
Combined franchised and independent auto dealers had a total supply of 2.15 million used vehicles on their lots in July, up 0.8% year over year and higher by 0.2% from June. Supply has moved modestly above year-ago levels but remains below 2023 and 2024 volumes for the month and well short of the roughly 2.4 million on dealer lots in July 2022.
Used-vehicle Inventory Volume
Used-vehicle Demand Outperforms Seasonal Expectations
The retail used-vehicle sales pace declined 2.2% year over year in July but increased 0.6% from June. Total retail used sales volume is estimated at 1.44 million. The month-over-month gain outperformed typical seasonal trends, as July normally sees a modest decline from June.
Used-vehicle Retail Sales
The used-vehicle sales increase at a point in the year when demand typically softens suggests underlying demand remains resilient. Used vehicles continue to offer a compelling value proposition compared with new models, even as used prices have moved higher. Improving credit availability is also helping support consumer demand, with credit access reaching its highest level since November 2015 in July.
Ford, Chevrolet, Toyota, Honda and Nissan remained the top-selling used-vehicle brands in July, unchanged from June and collectively accounting for half of all retail used-vehicle sales.
Days’ Supply Remains Stable as Sales Keep Pace With Inventory
The days’ supply, which is based on the estimated daily retail sales pace for the most recent month, was 46 in July, up one day year over year and unchanged from the revised June measure of 46. Compared to June, inventory volume increased 0.2% while the sales pace rose 0.6%, resulting in a 0.3% decline in days’ supply.
Used-vehicle Inventory Days’ Supply
Used-Vehicle Prices Plateau After Spring Gains
The average used-vehicle listing price was $27,028 in July, up 6% from a year earlier and essentially unchanged from the revised $27,016 recorded in June. While that is technically a fourth consecutive monthly increase, the run-up appears to have leveled off for the time being. July was also the second consecutive month with average listing prices above $27,000, marking the first back-to-back stretch above that level since the summer of 2023.
Average Used-Vehicle Listing Price
Prices rose across every age group year over year, with the steepest gains occurring among the older, lower-priced vehicles. Listing prices for vehicles 15 years and older rose 13.9% compared with a 3% increase for vehicles under five years old. A larger share of younger vehicles in the sales mix also contributed to the higher overall average.
Affordable Used Vehicles Remain in Short Supply
Affordability remains a challenge for budget-conscious shoppers. Vehicles priced below $15,000 carried just 32.2 days’ supply in July, well below the overall market average of 46 days, underscoring the limited availability of lower-priced options.
Supply in that price band fell 20% year over year and now accounts for 16.4% of all used-vehicle inventory, down from 20.6% a year ago.
Certified Pre-owned Sales Rebound From June
Certified pre-owned (CPO) sales were essentially flat year over year in July, according to data reviewed by Cox Automotive. CPO sales in July were up 6.6% month over month. July CPO sales are estimated at 223,676, up from 209,800 in June. CPO share of total used-vehicle retail sales was 15.5% in July, up from a revised 15.1% in June. Year to date, CPO sales are running approximately 1.8% below the same period last year.
