On the Dash:
- Inventory rises but supply stays tight – Used-vehicle lots hit 2.21 million, yet the days’ supply remains low at 43 days.
- Sales remain strong – August retail sales grew both month-over-month and year-over-year, fueled by pent-up demand.
- Prices adjust amid limited affordable options – Average listings dipped slightly, while vehicles under $15,000 remain scarce.
U.S. used vehicle inventory reached 2.21 million at the start of September 2025, marking the highest level so far this year, according to Cox Automotive’s analysis of vAuto Live Market View data. Meanwhile, the average listing prices hemmed down slightly to $25,393, while retail sales continued to rise, reflecting strong consumer demand.
Dealers, both franchised and independent, saw total inventory climb 2% from 2.16 million in early August and remain 2% higher than the same period last year. Retail sales rose nearly 5% month over month, with 1.55 million vehicles sold in August compared with 1.48 million in July. Compared to last year, used-vehicle sales are up 8%, fueled in part by buyers returning to the market amid more favorable conditions and uncertainty over future prices.
Days’ supply, a key measure of market tightness, stood at 43 days at the start of September, down one day from August and two days below the same time last year. This marks the lowest days’ supply for this time of year in three years and is below levels seen as far back as 2019.
Despite rising inventory, affordability remains a concern for many buyers. According to the report, vehicles priced below $15,000 are particularly scarce, with just 29 days’ supply, the lowest since March and well below the overall industry average. The top five selling vehicles of the month averaged $23,571, more than 7% below the overall listing price, highlighting consumer demand for lower-cost options.
Ford, Chevrolet, Toyota, Honda, and Nissan led the market, accounting for 50% of all used vehicles sold. Analysts say the market continues to benefit from buyers seeking more affordable alternatives to new cars, with sales momentum expected to remain strong in the second half of the year.
