Used-Vehicle Inventory Increased Month Over Month, Despite Healthy Sales, Lower Listing Prices

According to the Cox Automotive analysis of vAuto Live Market View data, used-vehicle inventory levels at the start of September were higher than in August.

As September opened, the total supply of used vehicles on dealer lots – franchised and independent – across the U.S. was at 2.18 million units, unchanged from a year ago but up from the 2.17 million units at the start of August.

With the aftereffects of the software outage now mostly in the past, the retail used-vehicle sales pace declined month over month in the most recent 30-day period. Sales of 1.54 million vehicles were lower than the 1.57 million reported at the start of August, a decline of 2%. Still, used-vehicle sales were healthy last month and higher year over year by 11%, and higher than the volumes recorded in late spring and early summer. Sales slowed some in the second half of August, which drove the days’ supply measure higher, increasing slightly from 41 to 42. According to the most recent  Cox Automotive Dealer Sentiment Index, U.S. auto dealers (combined franchised and independent) still see the current used-vehicle market as poor, but the sentiment has been improving over the past year.

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. Days’ supply was 42 at the beginning of September, up one day from the beginning of August and up six days compared to last year.

The average used-vehicle listing price was $25,172, down from the revised $25,425 at the start of August and 6% from a year earlier. The decrease in the average listing price was mostly due to a mix shift, with fewer 3- and 4-year-old vehicles being sold. Retail used-vehicle prices have been consistently lower through the first eight months of 2024 compared to year-ago levels.

AVERAGE USED-VEHICLE LISTING PRICE

Used-vehicle listing prices decreased month over month, mostly due to a shift in mix.

Affordability remains challenging for consumers, and supply is more constrained at lower price points. Used cars below $15,000 continue to show low availability, with only 31 days’ supply, the lowest since March of 2021 and 26% less than the industry average. The top five sellers of the month were listed at an average price of $23,682, about 6% below the average listing price for all vehicles sold. Once again, Ford, Chevrolet, Toyota, Honda and Nissan were the top-selling automakers, accounting for 51% of all used vehicles sold.

Scott Vanner

Senior Analyst of Economic and Industry Insights

Scott Vanner is a senior analyst 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.