Used-Vehicle Inventory, Prices Hold Steady as Sales Edge Higher

The used-vehicle market has shed the volatility seen during the pandemic and chip shortage, with inventory and prices holding rather steady, according to a Cox Automotive analysis of vAuto Available Inventory data.

The total supply of unsold used vehicles on dealer lots – franchised and independent – across the U.S. stood at 2.22 million units at the close of June. That was up from a revised 2.12 million at the end of May but down 10%, or 241,000 units, from the same time a year ago.

Total days’ supply at the end of June stood at 47, compared with 46 at the start of the month. The days’ supply was down 11% from year-ago levels. Days’ supply has been holding at this level since spring.

The Cox Automotive days’ supply is based on the daily sales rate for the most recent 30-day period, ending June 26, when sales were 1.43 million units, up 1% from a year ago.

“The last several months have followed very closely to 2019’s levels, the last normal year we’ve seen,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. “So it is worth noting that days’ supply is fairly normal for this time of year, which is something we haven’t seen for three years. Dealers are balancing their inventory to the sales rate, keeping days’ supply steady, even as total supply continues to improve.”

The average used vehicle listing price ended June lower than when the month opened. The average listing price closed the month at $27,147, down from the revised $27,720 at the end of May, which was the highest since early January. Similarly, according to the Manheim Used Vehicle Value Index, wholesale prices continued to decline.

JUNE 2023 AVERAGE USED-VEHICLE LISTING PRICE

Prices still falling – on average – but rate of decline slowing.

As with new cars, which has been the case for months, the lower the price segment, the tighter the inventory. The days’ supply for under $10,000 vehicles was 31, increasing with every higher price segment to the over $35,000 category with the highest days’ supply of 52.

Among the non-luxury used vehicles with the lowest inventory were Dodge and Honda, with 38- and 39-day supplies, respectively. They were the only brands with sub-40 days’ supply. Most other mainstream brands – both luxury and non-luxury – had days’ supply under 51.