On the Dash:
- Used-vehicle inventory fell to 2.18 million units in January as sales momentum remained strong.
- Retail used sales rose 4.6% month over month and 3.3% year over year.
- Affordable used vehicles under $15,000 remain in short supply.
U.S. used-vehicle inventory tightened in January even as retail sales gained momentum, signaling continued strength in the pre-owned market to start 2026.
According to Cox Automotive’s analysis of vAuto Live Market View data, dealers began February with 2.18 million used vehicles in stock. That figure is down 1% from 2.20 million a month earlier but up 3% year over year. Days’ supply stood at 48, nearly three days lower than December’s upwardly revised level and unchanged from a year ago. Supply remains constrained compared with recent years and is 9 days below January 2022 levels.
Retail demand remained solid. Used-vehicle sales reached 1.37 million units in January, up from 1.31 million in December. The latest 30-day sales pace increased 4.6% month over month and 3.3% compared with the prior year. Despite winter storms that slowed activity in the final week of January across much of the eastern United States, the market opened the year with strong momentum. Analysts point to improved credit availability, now at its strongest level since late 2022, along with the continued affordability gap between used and new vehicles.
Pricing trends were mixed. The average used-vehicle listing price was $25,533, up more than 1% year over year but down over 2% from December’s revised $26,120. The month-over-month dip was largely driven by softer pricing in the two largest segments, SUVs and pickups.
Affordability remains a challenge at the lower end of the market. Vehicles priced below $15,000 had just 37 days’ supply, 11 days below the industry average. The five top-selling models in January carried an average transaction price of $23,668, nearly 7% below the overall market average. Ford, Chevrolet, Toyota, Honda and Nissan collectively accounted for nearly half of all used-vehicle sales during the month.
Certified pre-owned sales showed resilience. CPO volume totaled an estimated 204,649 units in January, up 1% year over year but down 7.6% from December’s 221,418 units. Even with the monthly decline, CPO performance outpaced the broader new-vehicle market, which saw a 24% drop over the same period.
