On the Dash:
- Tight inventory and falling days’ supply will continue to pressure sourcing and reconditioning strategies.
- Strong seasonal demand reinforces the importance of pricing discipline and inventory turn.
- Limited sub-$15K inventory highlights ongoing affordability gaps and opportunities in lower-price segments.
Used-vehicle inventory declined for the third consecutive month in March, reaching its lowest level on record dating back to 2019, according to Cox Automotive’s analysis of vAuto Live Market View data. The tightening supply comes as seasonal demand strengthened, supported by tax refund activity and continued affordability challenges in the new-vehicle market.
Dealers nationwide, including both franchised and independent stores, held a total of 1.95 million used vehicles in inventory in March. That figure is down 5.9% year over year and 8.3% lower than the 2.13 million units recorded in February. The decline marks the lowest inventory level observed in the current data set.
Simultaneously, the used-vehicle sales pace improved in line with typical seasonal trends. Retail sales reached an estimated 1.62 million units in March, up from 1.37 million in February and the highest level in the past year. The daily sales pace increased 7% month over month, although total sales volume remained 2.9% below year-ago levels. March is typically the strongest month for used-vehicle sales, and 2026 followed that pattern, with performance exceeding 2023 and 2024 and aligning with 2022 levels, when new-vehicle inventory was historically constrained.
Stronger sales, combined with declining inventory, pushed the days’ supply down to 37 in March. That represents a decrease of 7 days from February and 2 days lower year over year, marking the lowest level since 2021. The continued tightening reflects both improved demand and limited inventory availability.
Average used-vehicle listing prices increased modestly during the month. The average listing price rose to $25,390, up 0.7% from the revised February level of $25,209 and slightly higher than year-ago levels. Despite overall price stability, affordability remains a concern, particularly in lower price tiers. Vehicles priced below $15,000 had just 27 days’ supply, 11 days below the industry average, limiting options for price-sensitive buyers.
Top-selling used vehicles in March averaged $23,861, approximately 6% below the overall average listing price. Ford, Chevrolet, Toyota, Honda and Nissan remained the top-selling brands, accounting for nearly 51% of all used vehicles sold.
Certified pre-owned (CPO) sales showed mixed results, totaling an estimated 221,840 units in March, up 9.2% from February’s 203,086 units but down 11.2% year over year. CPO share of total used-vehicle sales declined to 13.7%, compared to 14.7% in February.
