Preowned Vehicle Sales Trend Upward

June's total used-vehicle sales are projected to reach nearly three million units, up 2.8% increase year-over-year, according to Cox Automotive.

Cox researchers also estimated the seasonally adjusted annual rate, or SAAR, finished June at nearly 36.7 million, up from 35.7 million year-over-year and from May’s downwardly revised 34.1 million.

The research also projected a month-over-month increase in used-retail sales. 

Cox put retail used-vehicle sales, or t hose made onlyh at dealerships, at 1.6 million, up 3.3% year-over-year The pace of used-retail sales increased from May’s downwardly revised 18.1 million to 19.4 million in June.

Despite that, Cox has marginally reduced the 2023 total used-vehicle sales forecast to 2% below 2022. Those include private-party sales.

“It looks like there is some hidden strength in the used market this year, even though year-to-date sales are tracking below 2022 at the moment,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. “The triple whammy remains—high prices, high interest rates, and lower-than-usual supply—but the market keeps chugging along. While sales stalled a bit after mid-February, compared to 2022, at mid-year, things are not getting worse. Typically, we slow from here through year-end, and so far, that looks to be the case.”

Originally posted on Auto Dealer Today