Used-Vehicle Market Tight
November Cox Auto numbers show demand outpaced supply.
Used-vehicle inventory has hovered around a relatively tight 2.3 million for a while, Cox says.
IMAGE: Pexels/Andreas
Used-car inventory rose in November while days’ supply fell, Cox Automotive said, showing that sales growth exceeded replenished stock numbers.
Used sales have been brisk since pandemic-era supply-chain issues, coupled with consumer demand, squeezed new-vehicle inventories and prices.
Inventory ended the month at 2.36 million units, up 2.4% month-over-month but flat year-over-year, while days supply fell from 53 to 52; it was 56 a year earlier. Average mileage at sale was 70,368, flat month-over-month.
Despite the inventory decrease, used prices extended a nearly continuous fall from their March peak to an average listing price of just over $26,000, down both month-over-month and year-over-year, Cox said. That reflected a 2% month-over-month seasonally adjusted wholesale value drop – nearly 6% year-over-year.
Cox called the used market “relatively balanced.”
“It has been stuck in the 2.2 million to 2.3 million range for some time now, which is generally considered tight,” said Senior Manager of Economic and Industry Insights Chris Frey in a statement.
Used-vehicle sales are on pace to end the year at almost 19 million units, Cox predicts, under 2022’s result by 100,000 units.
Originally posted on Auto Dealer Today
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