Used Market Improves as New Holds Steady

U.S. used-vehicle inventory hit a high for the year in July, when new-vehicle inventory was flat as production and sales balanced each other, Cox Automotive said.

There were 2.25 million units between franchised and independent dealers at the end of the month, up 13% month-over-month, though still down 9% year-over-year.

Used-vehicle prices and days’ supply fell in the fuller inventory environment to an average listing price of $27,028 and days supply of 45, which was still down 12% year-over-year. Cox said it’s been shifting since April in the mid- to high 40s.

The average listing price was down 4% year-over-year.

“Used-vehicle inventory has seen an improvement since March, but the overall inventory volume is still considered tight,” said Cox Senior Manager of Economic and Industry Insights Chris Frey.

“Days’ supply, at 45, is on par with levels seen in 2019, but there has been a decline over the last several weeks, owing to increased used retail sales. Usually, we’d expect days’ supply to increase through year-end, but moderating prices and surprising summer demand may keep inventory numbers down.”

Meanwhile, new-vehicle inventory ended July at 1.96 million units, down just slightly month-over-month but 71% higher year-over-year. Days’ supply stood at 56, the same as June and 39% higher year-over-year. That’s nearly at the level the industry considers normal – 60 days.

The average listing price for new models was a hair over $47,000, holding steady with the level seen since April.

LEARN MORE: New-Vehicle Price Inflation Disappearing