Summary
The U.S. used-vehicle market tightened in January as retail sales strengthened and inventory edged lower month over month. Dealers began February with 2.18 million used vehicles on lots, down 1% from December but up 3% year over year. Sales momentum improved despite a late-month weather drag, with used retail sales at 1.37 million for the latest 30-day period, up 4.6% month over month and 3.3% year over year. Days’ supply fell to 48, roughly three days below December’s revised level, flat year over year, and nine days tighter than 2022, indicating a leaner market versus recent years.
By the numbers
- Inventory: 2.18 million as of early February (−1% m/m, +3% y/y)
- Retail sales: 1.37 million over the most recent 30 days (+4.6% m/m, +3.3% y/y)
- Days’ supply: 48 days (≈−3 days vs. revised December; flat y/y; −9 vs. 2022)
- Average listing price: $25,533 (≈−2% m/m from revised $26,120; >+1% y/y)
- Sub-$15,000 supply: 37 days (11 days below industry average)
- CPO sales: 204,649 (−7.6% m/m; +1% y/y); outperformed new-vehicle market (−24% m/m)
- Top sellers’ avg price: $23,668 (~7% below overall average)
- Top brands: Ford, Chevrolet, Toyota, Honda, Nissan (~50% of used sales)
What’s driving the market
- Credit availability held at its strongest since late 2022, supporting demand (Cox Automotive claim).
- Used vehicles’ affordability advantage over new models buoyed sales (claim).
- Month-to-month price declines were “most likely” led by SUVs and pickups (claim).
- Winter weather briefly slowed activity late in January, but overall momentum remained firm.
Dealer implications
- Lean days’ supply plus resilient sales favors disciplined pricing and fast turns.
- Competition is sharpest under $15,000; sourcing budget inventory is critical.
- Monitor SUV/pickup pricing; small moves in these large segments sway the national average.
- CPO remains relatively strong versus new, despite a typical seasonal m/m dip.
Consumer takeaways
- Prices eased from December but remain higher than a year ago.
- Best selection exists at midmarket price points; sub-$15,000 choices are scarce.
- SUV and pickup shoppers may find some relief from recent price softening, depending on local availability.
Methodology and context
- Analysis is based on vAuto Live Market View data at the national level.
- December inventory and pricing were revised upward; January comparisons reflect these revisions.
- Compared with 2022, a nine-day lower supply underscores a structurally tighter market.
