The decrease in the average listing price was mostly due to a mix shift, with fewer 3- and 4-year-old vehicles being sold. Retail used-vehicle prices have been consistently lower through the first eight months of 2024 compared to year-ago levels.
Used-vehicle inventory levels at the start of September were higher than in August as total supply of used vehicles on dealer lots – franchised and independent – nationwide stood at 2.18 million units, unchanged from a year ago but up from the 2.17 million units at the beginning of August, according to an analysis of Cox Automotive’s vAuto Live Market View data estimates released Sept. 20.
With the after effects of the software outage now mostly in the past, the retail used-vehicle sales pace declined month over month in the most recent 30-day period. Sales of 1.54 million vehicles were lower than the 1.57 million reported at the start of August, a decline of 2%.
Still, used-vehicle sales were healthy last month and higher year over year by 11%, and higher than the volumes recorded in late spring and early summer. Sales slowed some in the second half of August, which drove the days’ supply measure higher, increasing slightly from 41 to 42.
U.S. auto dealers (combined franchised and independent) still see the current used-vehicle market as poor, but the sentiment has been improving over the past year, according to the most recent Cox Automotive Dealer Sentiment Index.
The Cox Automotive days’ supply is based on the estimated daily retail sales rate for the most recent 30-day period. Days’ supply was 42 at the beginning of September, up one day from the beginning of August and up six days compared to last year.
Used Vehicle Prices Down 6% YOY
The average used-vehicle listing price was $25,172, down from the revised $25,425 at the start of August and 6% from a year earlier. The decrease in the average listing price was mostly due to a mix shift, with fewer 3- and 4-year-old vehicles being sold. Retail used-vehicle prices have been consistently lower through the first eight months of 2024 compared to year-ago levels.
Affordability remains challenging for consumers, and supply is more constrained at lower price points. Used cars below $15,000 continue to show low availability, with only 31 days’ supply, the lowest since March 2021 and 26% less than the industry average.
The top five sellers of the month were listed at an average price of $23,682, about 6% below the average listing price for all vehicles sold. Once again, Ford, Chevrolet, Toyota, Honda and Nissan were the top-selling automakers, accounting for 51% of all used vehicles sold.
August Retail Used Vehicle Sales Increase in August
Meanwhile, retail used-vehicle sales in August increased from July. The 8% month-over-month gain pushed retail sales estimates to the highest level since October 2021.
A total of 1.7 million used vehicles were sold at retail – from both franchised and independent dealers – during August, up 13.6% year over year. Days’ supply at the end of August was 42, up from a revised 41 days at the end of July.
“Used retail sales picked up steam in August as affordability in the used market improved slightly,” said Scott Vanner, senior analyst of economic and industry insights at Cox Automotive, in a Sept. 16 news release. “The increase in sales is partly attributed to the change in inventory mix, with a notable rise in units sold priced under $15,000 in August.”
The retail used-vehicle sales estimates are based on observed unit changes tracked by vAuto, a Cox Automotive brand specializing in inventory management.
