The dealer management system (DMS) outage that affected sales and inventory reporting throughout the previous month continues to create volatility in the automotive market. As of August 1, 2024, the total supply of used vehicles on dealer lots across the U.S. stood at 2.17 million units, down 3% from a year ago and from the 2.22 million units at the start of July. The Cox Automotive analysis of vAuto Live Market View data reveals that this decline in inventory is contributing to fluctuating days’ supply and sales figures, which are beginning to stabilize as the full impact of the outage becomes clearer.
Despite the disruption, used vehicle sales surged in July, particularly towards the end of the month, driving down the days’ supply to 41 days—a 12-day drop from the beginning of July and a seven-day decrease compared to last year. Sales during this period were up 27% month over month and nearly 15% year over year, reflecting a strong recovery from the previous month’s challenges.
The average listing price for used vehicles rose slightly to $25,415 at the start of August, up from $25,246 in July, though still 5% lower than a year earlier. This increase was primarily driven by a shift in the mix of vehicles sold, with a higher proportion of 0-to-2-year-old cars being sold. However, affordability remains a concern, especially for consumers seeking vehicles under $15,000, where supply is exceptionally constrained, with only 31 days’ supply available—29% below the market total.
The top five sellers for the month, priced at an average of $23,922, included Ford, Chevrolet, Toyota, Honda, and Nissan, which collectively accounted for 51% of all used vehicles sold. As the market adjusts to the recent disruptions, it presents challenges and opportunities for dealers and consumers alike.
