The volume of used-vehicle inventory was flat from July to August, as were prices – a sign of market stability, according to Cox Automotive’s analysis of vAuto’s available inventory data released Sept. 16.
The total supply of unsold used vehicles at dealer lots, both franchise and independent dealers, across the United States stood at 2.46 million units at the end of August, roughly the same number as the revised number at the end of July.
Total day supply at the end of August stood at 49, compared to the revised supply of 52 days at the end of July. Day supply in July was 24% higher than the previous year’s levels.
“Inventory volume at the end of August was 10% above year-ago levels, so we’re seeing some improvement,” said Chris Frey, Cox Automotive’s senior director for Industry Insights, in a statement. Press release. “In fact, we are followed at a fairly normal rate for supply.
Cox Automotive’s day supply is based on the daily sale rate for the most recent 30-day period, in this case, ending August 29. .
“While total used vehicle sales so far this year are down 16% from 2021, the year is following a normal trend line,” Frey said. “The latest rise in August suggests resilience in the second-hand market.”
By brand, Toyota and Honda had the lowest used vehicle inventory, with 42 and 41 days of supply, respectively. They are also at the lower end of the new vehicle supply scale.
Subaru and Hyundai, with 43 and 44 day used day supply, and Kia with 46 day used day supply, are other Asian automakers with lightly used new vehicle inventory as well as new vehicle inventory reduced. Mazda has an above average new vehicle inventory, but is rather low at Used Vehicle Inventory for 45 days.
Per price category, the lower the price, the lower the supply. The under $10,000 segment has the lowest available supply and the lowest day supply of 31, down one point from a month ago. The $10,000 to $15,000 segments saw a drop in day supply to 36 from 37 a month earlier. Price categories between $15,000 and $30,000, representing the bulk of available inventory, had a 51-53 day supply. Categories above $30,000 had 55 to 61 days of supply.
The average used vehicle listing price topped $28,000 in mid-April and hit a record high of $28,375 in early May. The average listing price then dipped slightly throughout August, closing at $28,061. This compares to a revised amount of $28,003 at the end of July. Year-on-year price growth was 28% in mid-April, but has fallen every week since and is now 9% higher than a year ago.
“The average used vehicle listing price continues to trend at just over $28,000, but price growth has definitely slowed since we passed the anniversary of the big race last year. “, said Frey. “Yet prices remain above 2021 levels and will remain there as long as demand remains strong and until new vehicle inventories build up.”
In terms of wholesale prices, the Manheim Used Vehicle Value Index shows prices have been falling for most of the year and were down 4% in August compared to July. Over the past six weeks, the gap between wholesale and retail prices has widened.
“It’s unclear whether the retail index will follow the wholesale index through the depreciation cycle over the next 16 weeks,” Frey said. “Anyway, the wholesaling started to depreciate again after the spring.”
Originally posted on Vehicle Remarketing