Used-Vehicle Inventory Tightens as Sales Surge in February, Driven by Tax Refunds

According to the Cox Automotive analysis of vAuto Live Market View data, used-vehicle inventory levels at the start of March decreased from February and were lower than in early March 2024.

As March opened, the total supply of used vehicles on dealer lots – franchised and independent – across the U.S. was at 2.18 million units, down from the 2.23 million units at the start of February 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 1.57 million vehicles in February, up 16% compared to the 1.36 million reported in January. Tax refunds, which are a key driver of used-vehicle sales, averaged $3,453, up 7% year over year as of Feb. 21, the latest data. While the used-vehicle sales pace typically increases from January to February with the influx of tax refunds, this year’s 16% increase is the largest jump seen in recent years.

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-vehicle days’ supply was 42 at the beginning of March, down eight days from the beginning of February and down three days compared to last year. Used days’ supply remains tight and is down nearly three days compared to 2019 levels and is now at the same levels seen in 2023.

The average used-vehicle listing price was $25,006, down from the revised $25,146 at the start of January and now down 1% from a year earlier. For the past three years, used-vehicle listing prices have consistently been lower than the previous year’s levels. While this trend has continued into 2025, prices are now the closest they have been to the previous year’s levels since 2023.

AVERAGE USED-VEHICLE LISTING PRICE

Average used-vehicle listing price in January is 2% lower year over year and declined each week in January

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, now with only 30 days’ supply, five days lower than the same time last year and 12 days below the overall industry average. The top five sellers of the month were listed at an average price of $23,531, 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.