According to Cox Automotive data, used vehicle inventory held steady from June to July, while sales and prices saw an increase toward the end of the month. The total supply of unsold used vehicles across the US stood at 2.46 million units at the close of July, and the total day-supply dropped to 49 as used vehicle sales picked up. This number represents a 24% increase above year-ago levels. Estimates from Dealertrack show that used vehicle retail sales declined 13% from June to July, and sales were down 16% year over year.
Chris Frey, Cox Automotive’s Senior Manager for Industry Insights, stated, “We’re tracking at a fairly normal pace for supply. Sales have slowed compared to the strong pace we saw in the summer of 2021 but are still relatively healthy.”
Toyota and Honda had the lowest used inventory supply, with both brands coming in under a 40 day-supply. Subaru and Hyundai also had low numbers, at only 43, and Kia came in at 44.
Average used vehicle listing prices remain high, at just over $28,000. Frey said prices would remain above 2021 levels as demand remains strong and until new-vehicle inventory builds. Meanwhile, wholesale prices have been trending downward for most of the year.
Certified pre-owned sales in July fell to 206,346 units, down 17% from July 2021. Sales have remained relatively stable since May of this year and are on track to hit 2.4 million by the end of the year.
“Used vehicle sales and CPO sales in the summer of 2021 were particularly strong, so the year-over-year comparison is a tough one,” added Frey. “Still, the used market this year is certainly feeling the impacts of high inflation and elevated used-vehicle prices. Sales continue to be soft, but we are not suggesting the market is under stress.”
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