On the Dash:
- Used car inventory reached a post-COVID high in October, up 4.8% year over year.
- Nearly new vehicles drove the gain, and cars under $15K remain the tightest segment.
- New vehicles priced at $70K and above carry about 99 days of supply.
Used inventory has climbed to a post-COVID high, but the affordable cars most shoppers want are still hard to find. Although new inventory is rebuilding too, much of it is landing where demand isn’t. That’s the picture that the latest CarGurus reports paint, which could impact how dealers stock and price heading into the end of the year.
CarGurus’ October 2026 Intelligence Report shows used inventory up 4.8% year over year and 2.2% from September. Days supply held flat at 50.4, suggesting the market is absorbing the extra cars even as time-on-lot creeps back up.
Used inventory climbs, affordable supply stays tight
Nearly new models, those 3 years old and younger, supplied about 60% of the year-over-year increase, which suggests the expected wave of off-lease vehicles has arrived. They also made up 43% of October sales, up from 40.4% a year ago, and nearly new demand ran 11% above last October.
The average used listing price fell below $30,000 for the first time in six months to $29.8K, though it’s still $985 higher than a year ago. Listings under $15K dropped 3% year over year while total inventory grew about 5%, and that tier has the tightest days supply at about 49 days, compared with more than 60 for vehicles at $50K and up.
Used vehicles are also taking longer to sell, with average days on market rising 2.1 days to 70.9 in October. That’s level with a year ago after six straight monthly increases, and listings sitting 60 days or more now make up 36% of used inventory. A 3% rise in days on market at Franchise stores offset declines among Independents.
New inventory rebuilds, but not where demand is
New inventory rose 6% from September after bottoming out in August, putting it nearly on par with 2025. GM and Stellantis each added roughly 10% more units than a year ago, while Ford and Honda fell 8% and 13%.
The average new listing price slipped 0.5% to $51.6K, the first monthly decline this year, but it’s still up 4.3% from a year ago. Listings at $50K and above are up 17% and make up 45% of inventory, while listings under $40K are down 12%. The Detroit Three hold about 47% of new inventory but only about 35% of sales, and Stellantis sits at 122 average days on market.
New days supply of 79.8 is flat year over year, but vehicles under $50K have 4 to 8 fewer days than a year ago while vehicles at $70K and above sit near 99 days. CarGurus says OEMs may need late-year incentives to rebalance inventory.
Stocking and pricing for year-end
Nearly new used units are where supply and demand are both growing, so that’s the segment to lean into. Cars priced under $15K are scarce and turn fast, so they’re worth sourcing aggressively. Additionally, aged inventory deserves a close look, especially at franchise stores. With 36% of used listings past 60 days and Franchise days on market rising, acting on aging units sooner can help protect gross.
On the new side, check your mix against what’s actually selling. Dealers heavy in $70K-and-up units should watch for OEM incentives this quarter, while stores with in-demand, lower-priced models may find those continue to move faster than the rest of the lot.
