Buyers are increasingly turning to certified pre-owned cars, with CPO sales climbing 2.7% in November
December 29, 2024 at 09:45
- Dealers began December with an average of 46 days’ worth of used vehicle supply.
- A touch over 1.41 million used vehicles were sold in the US last month, 13% more than 2023.
- Lower-priced vehicles are vanishing fast, with supply shrinking nine days compared to last year.
The used-car market is sending mixed signals, with prices ticking down slightly even as inventory continues to tighten. In November, the average listing price for used vehicles in the United States dipped compared to the same month last year, settling at $25,565. However, this modest price decrease comes amid a 6% drop in available supply on dealer lots, which now sits at approximately 2.18 million units nationwide.
Read: New vs. Used Price Gap Hits A Record High Of $20,000
Throughout the year, the average listing price of used vehicles has remained relatively stable, hovering near the $25,000 mark. Prices dipped to a low of $25,134 in February before peaking at $25,731 in May. In November, the average price settled at $25,565, reflecting a slight decline of 2.6% from the $26,239 recorded in November 2023.
Meanwhile, Cox Automotive data shows that 1,417,573 used vehicles were sold in the States last month, a notable increase from the 1,259,277 units sold during the same month last year—a year-over-year rise of around 13%. Even compared to October, when 1,393,841 used vehicles were sold, sales climbed by 2%, reflecting an unexpectedly strong finish to the year for the used-car market.
Inventory Tightens, Especially for Lower-Priced Cars
Dealer inventories continue to dwindle. At the start of December, the average supply of used cars stood at 46 days, down slightly from 47 days in November and significantly lower than last year’s 57.8 days.
AVERAGE USED-VEHICLE LISTING PRICE
Senior analyst of economic and industry insights at Cox Automotive, Scott Vanner, notes that supplies are particularly restrained at lower price points. In fact, there is just a 34-day supply of used cars below the $15,000 mark. This represents a nine-day drop from the same time last year. Among the top-selling brands in November were Ford, Chevrolet, Toyota, Honda, and Nissan. These five alone accounted for 49% of all used vehicles sold across the month.
“Sales are running seasonally stronger than we usually see,” Vanner noted. “As consumers shy away from bad weather and the holiday season cuts down on selling days, used sales trends in Q4 generally start to slow down a bit. This year, we are seeing stronger-than-usual performance, with sales up by double digits compared to last year.”
USED-VEHICLE INVENTORY VOLUME AND DAYS’ SUPPLY
Certified pre-owned (CPO) vehicles are also gaining traction. November saw 208,708 CPO vehicles sold, up from 205,863 in the same month last year and 198,313 in November 2022. Compared to October, CPO sales rose by 2.7%. This upward trend suggests that buyers increasingly see value in vehicles that come with a manufacturer-backed warranty, even if it means paying a slight premium over standard used cars.
The sales data highlights a used-car market that, while technically softening in price, remains challenging for buyers. Inventory continues to tighten, especially for affordable vehicles, leaving fewer choices for those on a budget.
MONTHLY USED VEHICLE RETAIL SALES
