Retail used-vehicle sales showed an upward trend in January, with a notable 8% increase year-over-year, according to Cox Automotive’s vAuto Live Market View data. In total, 1.41 million used vehicles were sold at retail, including both franchised and independent dealerships. This boost comes after a slight increase from December’s numbers, despite a reduction in the days’ supply of used vehicles, which dropped by two days to 48.
Scott Vanner, senior analyst of Economic and Industry Insights at Cox Automotive, explained that January’s sales increase was typical for this time of year, although it exceeded last year’s growth. Despite this, the sales growth is still lower than levels seen in previous years, primarily due to lingering market constraints.
While retail used-vehicle sales performed well, certified pre-owned (CPO) vehicle sales saw a decline in January. CPO sales dropped by 6.4% from December, with January sales reaching 203,071 units, down from 216,955 units in December. Despite the month-over-month decline, CPO sales were still up 0.7% compared to January 2024. The decrease in January can be attributed to factors such as fewer selling days and limited supply of off-lease and trade-in vehicles.
Cox Automotive forecasts that retail used-vehicle sales will reach 20.1 million units in 2025, marking a modest growth of 1.2% compared to 2024. This forecast is shaped by ongoing supply constraints, as lower production during the pandemic and fewer lease maturities continue to impact both retail and wholesale inventory levels. While most segments in the used-vehicle market are expected to see growth, CPO sales are projected to decline by 1.6%, reaching 2.5 million units in 2025 due to a reduced number of lease returns.
The used-vehicle market in 2025 is expected to face continued challenges with supply, but it remains poised for steady growth, especially in the retail segment. However, the outlook for CPO vehicles may face headwinds as the industry adjusts to these supply limitations.
