The used-vehicle market has lost volatility seen during the pandemic and chip shortage, with inventory and prices remaining fairly flat, according to a Cox Automotive analysis of vAuto available inventory data released July 14.
The total supply of unsold used vehicles at dealership lots – both franchise and independent – across the United States stood at 2.22 million units at the end of June. That was up from the revised 2.12 million at the end of May, but down 10%, or 241,000 units, from the same period a year ago.
The total supply of days at the end of June amounts to 47 days against 46 at the beginning of the month. Day supply was down 11% from year-ago levels. The supply of days has remained at this level since the spring.
Cox Automotive’s day supply is based on daily sales rate for the most recent 30-day period, ending June 26, when sales were 1.43 million units, up 1% compared to a year ago.
“The last few months have tracked 2019 levels very closely, the last normal year we’ve seen,” said Chris Frey, senior director of economic and industry news at Cox Automotive. “So it should be noted that day supply is pretty normal for this time of year, something we haven’t seen in three years. Dealers are balancing their inventory based on the rate of sale, keeping the daily supply stable, even as the total supply continues to improve. »
THE average listing price for a used vehicle ended June down from the month’s open. The average listing price ended the month at $27,147, down from the revised price of $27,720 at the end of May, which was the highest since early January. Likewise, wholesale prices continued to fall, according to the Manheim Used Vehicle Value Index.
As with new cars, which has been the case for months, the lower the price segment, the tighter the inventory. The day supply for vehicles under $10,000 was 31, increasing with each price segment above the over $35,000 category with the highest day supply of 52.
Among the non-luxury used vehicles with the lowest inventory were Dodge and Honda, with 38 and 39 day supplies, respectively. These were the only brands with a supply of less than 40 days. Most other mainstream brands – luxury and non-luxury – had a supply of less than 51 days.
Originally posted on Remarketing of vehicles