On the Dash:
- Used-vehicle inventory increased 4% month over month to 2.12 million units.
- Average listing prices climbed to $26,918, the highest level since mid-2023.
- Retail used-vehicle sales fell 3.9% year over year amid affordability pressures.
Used-vehicle inventory expanded in May as retail demand softened and average listing prices climbed to their highest level since mid-2023, according to Cox Automotive’s analysis of vAuto Live Market View data.
Franchised and independent dealerships closed May with 2.12 million used vehicles in inventory, a 4% increase from April. Despite the monthly gain, inventory sat 0.6% below year-ago levels and trailed recent historical norms. Retail used-vehicle sales also slowed, with Cox Automotive estimating dealers moved 1.45 million used vehicles during the month, down 3.9% year over year and 2% from April.
Economic pressures and rising vehicle prices likely weighed on demand, though improving credit availability helped offset some of those headwinds. Credit access reached its highest level since April 2022, and used vehicles continued to offer buyers a more affordable alternative to new models. Ford, Chevrolet, Toyota, Honda, and Nissan led all used brands, accounting for nearly half of every used vehicle sold in May.
As inventory grew and sales slowed, days’ supply rose to 45, up one day year over year and two days from April’s revised level of 43. Inventory volume climbed 4% month over month while the sales pace dropped 2%, pushing days’ supply up 6.1%.
Average used-vehicle listing prices reached $26,918 in May, up 6% year over year and 2.2% from April. The gain marked the third consecutive month of above-normal increases, driven largely by stronger sales of higher-priced vehicles, particularly near-new SUVs. Affordable inventory remained scarce, with vehicles priced under $15,000 carrying just a 33-day supply, well below the market average.
Certified pre-owned (CPO) sales posted some improvement, rising 6.1% month over month to an estimated 228,521 units. Even so, CPO sales fell 0.9% year over year and are tracking 3.3% below 2025 levels through the first five months of the year.
