Used Sales Leap on Consumer Rush

Retail used-vehicle sales jumped along with new-vehicle deliveries in March as consumers rushed to get ahead of trade tariffs’ expected push on prices.

The monthly volume of 1.7 million units, up 12% year-over-year – sharply higher than the normal spring bump – was the strongest result in four years, according to Cox Automotive data.

Brisk sales ate into existing supply, cutting it by four days to 39 as consumers took advantage of the less expensive prices than new models. Inventory ended the month at 2.1 million units, down 1% year-over-year.

Prices rose along with sales volume in the first month-over-month increase this year to an average listing price of just over $25,000, Cox said. Units under $15,000 are at their lowest supply in four years at 28 days’ supply.

The certified preowned segment of used sales also rose, by a whopping 21% month-over-month and 6% year-over-year to about 247,000 units, said Cox, which attributed that result to robust new-vehicle sales increasing trade-ins supply. 

Cox downgraded its full-year CPO sales forecast, though, due to decreased lease maturities, reduced trade-ins, and higher prices.

As for overall used-vehicles sales, it kept its full-year forecast about the same since it expects more stability in the segment as consumers opt for the lower prices. 

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