CARY, N.C. – Cox Automotive has forecasted a 39.4 million total of used-vehicle sales this year, down from the estimated 39.6 million in 2019, including both used-vehicle sales by dealers as well as those between private parties.
“As affordability remains a challenge, more consumers chose used vehicles in 2019.”
However, sales of retail used-vehicles, defined by Cox Automotive as "those made by franchised or independent dealers," are expected to increase from an estimated 20.0 million in 2019 to 20.3 million this year.
Cox Autmotive Chief economist, Jonathan Smoke, expects this year to mark "the beginng of a slight decline in total" used-vehicle sales. While used-vehicle sales by dealerships should keep on climbing.
"We believe the retail market will continue to grow as the supply shifts to higher-quality, younger and more expensive used vehicles,” said Smoke.
The National Automobile Dealers Association said that affordability issues on the new-car side, along with robust used-car inventory levels, have some consumers moving from new to used.
“As affordability remains a challenge, more consumers chose used vehicles in 2019,” NADA chief economist Patrick Manzi said in the analysis. “New cars are getting too expensive for many consumers. Even consumers with great credit or the ability to buy new are instead choosing a used vehicle.”