September used-vehicle inventory hits 2025 high as sales slow

On the Dash:

• Used-vehicle retail sales fell 5.2% in September but remain 6.6% above last year.
• Average used-auto loan rates climbed above 14%, constraining affordability.
• Inventory rose to 2.26 million vehicles, reaching the highest level of 2025.

Retail used-vehicle sales fell 5.2% in September as affordability challenges and seasonal trends cooled demand across the market, according to recent vAuto Live Market View data.

Dealers sold an estimated 1.42 million used vehicles during the month, down from 1.50 million in August but 6.6% higher than the same period last year. The slowdown came as inventory levels reached a new 2025 high, with 2.26 million used vehicles available nationwide at the start of October. Days’ supply rose to 48, up four days from early September and one day higher than last year.

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Industry analysts point to rising interest rates and constrained affordability as the key factors behind September’s weaker performance. Despite a recent rate cut by the Federal Reserve, average used-auto loan rates climbed to more than 14% due to an increase in subprime borrowing.

Certified pre-owned (CPO) sales also softened, declining 19.4% month over month to an estimated 194,020 units. However, CPO sales remain up 6.7% from a year ago and are running 2.7% higher year to date.

Used-vehicle prices continued to rise modestly, with the average listing price increasing to $25,825 at the start of October, up from $25,371 in September and 2% higher than a year earlier. Inventory remains particularly tight among vehicles priced below $15,000, which had just 34 days of supply, 14 days lower than the industry average.

Despite the softer sales pace, consumer interest in used vehicles remains relatively strong. Year-over-year gains indicate that many buyers continue turning to the used market for more affordable alternatives to new models. The top-selling brands in September were Ford, Chevrolet, Toyota, Honda, and Nissan, which together represented half of all used-vehicle transactions.

While the used-vehicle segment remains resilient, dealers face increasing pressure to balance inventory and pricing strategies as affordability issues continue to shape consumer behavior.