Used Sales’ Spring Dip More Pronounced
Waning tax refunds pair with high interest rates to mute demand, Cox Automotive says.
The total sold for the month surpassed last April’s volume but was below the 1.6 million average for April of the past five years.
Pexels/Erik McIean
Used-vehicle sales at franchised and independent dealers fell in April in a normal seasonal pattern exacerbated by high interest rates.
Used sales declined 7% month-over-month to 1.45 million units, though that was still up about 5% from a year earlier, Cox Automotive said.
The dip happened like normal as the period of income tax refunds dissipated.
“With interest rates remaining elevated, consumers need a bit more of a push to buy at this time of year,” said Senior Director of Economic and Industry Insights Jeremy Robb.
He said the affordability issues, along with limited inventory, made the seasonal decline more pronounced.
The total sold for the month surpassed last April’s volume but was below the 1.6 million average for April of the past five years.
The certified preowned segment of used retail sales was also down, falling about 10% month-over-month and by about 3% year-over-year to just over 209,000 units. Year-to-date, it's about flat.
Originally posted on Auto Dealer Today
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