Used car sales surge during holiday season

Dealers saw higher used car sales in Nov. than they did last year, while inventory levels remained unchanged throughout the month.

Driving the news: Retail used-vehicle sales rose nearly 2% in Nov. compared to Oct., reaching 1.42 million units, according to Cox Automotive.

• Sales were also up 13% year over year, representing a stronger-than-usual surge for this time of the year.

Zooming in: While retail sales improved, supply levels stayed relatively flat, with inventory shrinking roughly 6% compared to 2023.

• Days’ supply in the first week of Dec. dropped to 46, down from 47 in Nov. Last year, days’ supply was at 55 days.

Looking ahead: Despite the improved sales, affordability challenges continue to plague the market.

• The average used car listing price of $25,565 at the start of Dec. was slightly higher than Nov.’s but 3% lower than in 2023.

• In comparison, preowned vehicle listings were at $25,328 at the beginning of the year, meaning prices have changed little throughout the year.

• Stubborn prices have boosted demand for cheaper deals, causing days’ supply for cars priced below $15,000 to fall below 34.

Bottom line: While prices are still high, the last month and a half have defied the usual seasonal slowdown in used sales. Consumer demand continues to be robust despite fewer selling days and colder weather.

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 90,000 others now, it's free:

Mia answers the phone 24/7 for sales, service, parts and your front desk. But unlike other solutions, she speaks naturally like a human.

We're talking fluid, open-ended conversations instead of the dreaded 'press 1, press 2'.

Mia answers every call with a friendly attitude to help customers shop for cars, book service appointments, and answer any questions. She even speaks multiple languages.

Mia seamlessly integrates with your CRM, DMS & inventory system to give you the best data possible.

Mia never takes time off, so you'll never miss a phone lead again. Check her out at mia.inc.