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.
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