On the Dash:
- Inventory remains constrained, particularly for affordable used vehicles under $15,000, requiring proactive sourcing strategies.
- February sales growth suggests an opportunity to move higher-priced used vehicles amid strong demand.
- Monitoring CPO trends and new-vehicle affordability is critical as shifts in credit availability and pricing impact buyer behavior.
Used-vehicle inventory declined month over month in February while sales pace improved, according to Cox Automotive’s analysis of vAuto Live Market View data, as modest price softening and stronger credit availability helped drive retail demand.
Dealers nationwide, including both franchised and independent stores, held 2.13 million used vehicles in inventory during February 2026. The total was 1.6% higher than a year ago but down about 2.6% from January’s 2.18 million vehicles.
At the same time, demand for used vehicles improved, with retail sales in February estimated at 1.41 million vehicles, up from 1.38 million in January and 5.5% higher than a year earlier. On a daily sales rate basis, dealers sold an average of 50,400 vehicles per day, a 13% increase from January’s 44,500.
The stronger sales pace, combined with lower inventory, pushed days’ supply down to 42 days in February. That figure is two days lower than a year ago and seven days below the revised January level. Supply remains constrained compared with recent years and is 11 days below February 2022 levels.
Cox Automotive noted several factors that likely contributed to February’s stronger sales activity. Credit availability reached its highest level since 2022, tax refund amounts were higher than in prior years, and the market rebounded after a weather-related slowdown in late January.
Pricing softened slightly, as the average used-vehicle listing price was $25,287, up less than 1% year over year but down 1.1% from January’s $25,570. The month-over-month decline was likely driven by continued price softening in SUVs, which accounted for nearly half of all used vehicles sold during the month.
Affordable used vehicles remain in limited supply, with units priced below $15,000 available for only 31 days, which is nine days less than the industry average.
Brand concentration remained high, with Ford, Chevrolet, Toyota, Honda, and Nissan again the leading brands, accounting for nearly 50% of all used vehicle sales in February.
Meanwhile, certified pre-owned sales reached 207,263 vehicles, up 2% year over year and 2.2% higher than January’s 206,505.
Despite modest improvements in new-vehicle affordability, Cox Automotive noted that many consumers still view new vehicles as financially out of reach, which continues to support demand in the used-vehicle market.
