Used-Vehicle Sales Increased Year Over Year but Were Hampered by Lower Supply

Takeaway: In 2024, the used-vehicle market was strong, with total sales reaching approximately 37.4 million units, including 19.9 million retail sales. Retail inventory levels fluctuated, with a notable increase in January but decreased as the spring selling season drew down available supply to the lowest level in a year. Overall, the market was characterized by generally tight inventory, stable pricing and strong demand, with a gradual return to pre-pandemic levels of activity.

What’s next: In 2025, the retail used-vehicle market is forecast to expand year over year, despite tight inventory. Used retail sales will likely hit 20.1 million next year, delivering the best year since 2021. It will be a positive year for the Manheim Index as well, with the index forecast to finish 2025 slightly higher year over year, suggesting used-vehicle values will grow at a normal pace.