Retail used-vehicle sales saw a strong increase in February, with 1.57 million units sold at franchised and independent dealerships, according to Cox Automotive’s vAuto Live Market View data. This marks a 16% rise from January and a 6% increase year over year, largely driven by the seasonal influx of tax refunds that typically boost consumer purchasing power early in the year.
As of early March, the days’ supply of used vehicles stood at 41.7, down eight days from February and three days lower than a year ago. The total inventory volume reached 2.18 million units, reflecting a slight monthly decline and a 1% decrease compared to 2024. Despite lower supply, used-vehicle affordability has shown modest improvement, with the average listing price stabilizing at $25,006, down 1% from last year.
Scott Vanner, senior analyst of Economic and Industry Insights at Cox Automotive, noted that used-vehicle sales typically increase between January and February due to tax refund season. However, he notes that this year’s increase is the most significant surge in the past few years.
Certified pre-owned (CPO) sales also experienced a slight uptick in February, rising to 203,663 units from 203,071 in January, though they remain down 3.4% year over year. Ford, Chevrolet, Toyota, Honda, and Nissan continued to dominate the used-vehicle market, collectively accounting for 51% of total sales.
The affordability challenge remains particularly pressing in the under-$15,000 segment, where inventory levels have tightened further. The days’ supply for these vehicles has dropped to 30, making it increasingly difficult for budget-conscious buyers to find low-cost options.
With tax refunds fueling demand, the used-vehicle market is expected to maintain momentum into the spring. However, ongoing supply constraints and affordability pressures could shape sales trends in the coming months.
