On the Dash:
- Used-vehicle demand is holding up better than expected, supporting retail sales despite seasonal pressure.
- Tight sub-$15,000 inventory remains a challenge for dealers serving budget-conscious shoppers.
- Stable supply and leveling prices give dealers a more balanced used-vehicle market heading into fall.
According to Cox Automotive, retail used-vehicle sales rose 0.6% from June to an estimated 1.44 million units in July, outpacing typical seasonal trends even as sales fell 2.2% year over year. July usually brings a modest sales decline from June, and the increase suggests demand remains resilient heading into fall.
Improving credit availability also supported consumer demand, as credit access reached its highest level since November 2015 in July.
Dealers held 2.15 million used vehicles in July, up 0.2% from June and up 0.8% year over year. The agency also reported that inventory remains below July 2023 and July 2024 levels and well short of the roughly 2.4 million vehicles dealers held in July 2022.
Used-vehicle inventory held at a 46-day supply in July, unchanged from June and up one day from a year earlier. Inventory grew 0.2% while sales pace climbed 0.6%, keeping supply relatively balanced.
Average listing prices reached $27,028 in July, largely unchanged from June but 6% higher than a year earlier. July marked the second consecutive month that average listing prices topped $27,000. Vehicles 15 years and older saw the steepest price gains, rising 13.9% year over year.
Affordable used inventory remains a challenge
Vehicles priced below $15,000 had only a 32.2-day supply in July, a 20% year-over-year drop. These vehicles accounted for 16.4% of the total used inventory, down from 20.6% a year earlier, limiting options for budget-conscious shoppers.
Certified pre-owned sales climbed 6.6% month over month to an estimated 223,676 units. CPO vehicles accounted for 15.5% of total used-vehicle retail sales, up from 15.1% in June. CPO sales held essentially flat year over year in July, though they are running about 1.8% below last year on a year-to-date basis.
