Summary of Used-Vehicle Market Trends in June
The used-vehicle market experienced a notable shift in June as inventory levels increased and retail sales slowed, according to Cox Automotive’s analysis of the national monthly data from vAuto Live Market View (VMA).
Key Highlights
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Average Listing Price:
- The average listing price for used vehicles was $27,027, remaining stable from the previous months and up 6% year over year.
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Inventory Volume:
- Dealers had a total inventory of 2.14 million used vehicles, reflecting a 0.2% increase year over year and a 1% increase from May. However, these levels are still constrained compared to historical norms.
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Retail Sales Pace:
- Retail used-vehicle sales declined by 1.6% year on year and 1.9% from May, aligning with seasonal trends typical at the start of summer. Economic pressures alongside higher vehicle prices likely impacted sales.
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Credit Availability:
- Improved credit access, the highest since December 2015, is supporting consumer demand, offering better financing options for buyers.
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Top-Selling Brands:
- The leading brands in used-vehicle sales included Ford, Chevrolet, Toyota, Honda, and Nissan, accounting for nearly half of retail sales.
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Inventory Days’ Supply:
- The days’ supply of used vehicles increased to 47 days, up 1 day year over year and 2 days from May.
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Affordability Challenge:
- Vehicles priced below $15,000 had a particularly low supply, with just 33 days’ supply, highlighting the scarcity of budget-friendly options.
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Certified Pre-Owned (CPO) Vehicles:
- CPO sales were up 5% year on year but saw a 7.8% decline month over month, with June’s sales at approximately 210,335 vehicles.
Conclusion
Despite the recent softening in sales, the used-vehicle market remains resilient, with a strong demand for used vehicles driven by improving credit access. However, affordability continues to be a significant concern for budget-conscious buyers in an increasingly competitive market.
