Summary
Used-vehicle inventory opened 2026 on stable footing while demand accelerated. Dealers held 2.20 million units on Jan. 1 (flat month over month, up 5% year over year), with days’ supply at 49—slightly tighter than early December and more than 10 days leaner than the same time in 2019. The sales pace strengthened into December, supporting a modest price uptick and keeping supply comparatively lean by historical standards.
Key figures
- Inventory: 2.20 million units (flat vs. early December after revisions; +5% vs. early January 2025).
- Days’ supply: 49 (−1 day vs. early December; +1 day year over year; >10 days below 2019).
- Retail sales pace (latest 30 days): +2.9% year over year; +2.0% month over month.
- Retail used sales in December: 1.34 million (vs. 1.32 million in November).
- Average listing price: $26,043 (+~1% year over year; +1% vs. revised $25,792 in early December).
- Sub-$15,000 supply: 38 days (≈11 days fewer than industry average).
- Top sellers’ average listing price: $24,049 (≈8% below overall average).
- Brand mix: Ford, Chevrolet, Toyota, Honda, and Nissan = 50% of December used sales.
Market dynamics
Stable inventory paired with a faster sales rate kept supply lean relative to demand, even as unit counts rose versus last year. The stronger-than-usual December finish—supported by improving credit conditions and used vehicles’ affordability edge over new—helped firm prices without signs of overheating.
Affordability and mix
Lower-priced vehicles remain scarce. Units under $15,000 have a 38-day supply, indicating faster turnover and limited options for budget shoppers. Consumer demand remains concentrated below the market average price, as evidenced by the top-selling models’ $24,049 average listing price.
Methodology and revisions
Days’ supply is calculated from estimated daily retail sales over the most recent 30 days, so supply can move even when inventory is flat. Early December figures were revised to 2.20 million units and a $25,792 average listing price, providing the baseline for January’s comparisons.
Outlook
If the elevated sales pace persists, expect continued relatively tight supply—especially in lower price bands—to support prices and keep turnover brisk into early 2026.
