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

Takeaway: Used retail sales started the year strong but were hampered by tight supply throughout 2023. In Q4, the markets experienced a fairly steady level of weekly used sales and ended the year with estimated volume of 35.9 million units, finishing about 4% higher versus 2022. For the full year, used retail sales at 19.0 million were down about 3% year over year, curtailed in part by a constrained supply of newly used vehicles into the ecosystem and improving new-vehicle inventory levels.

What’s next: In 2024, the used-vehicle market is expected to grow by less than 1%. The total number of used vehicles sold is expected to reach 36.2 million, with 19.2 million vehicles sold via retail channels. In 2024, the market should continue to feel the pinch of lower new-vehicle sales in 2021 and 2022, keeping supply inputs for used units constrained versus normal periods.