Used vehicle sales are slipping, and pushing used inventory levels to their highest point of the year.
The details: According to Cox Automotive’s vAuto Live Market View, retail used vehicle sales in September declined month-over-month compared to August, with the drop in certified pre-owned (CPO) vehicles nearly four times steeper than used cars overall.
1.42 million used vehicles were sold at retail across both franchised and independent dealers during September, down 5.2% month over month but up 6.6% year over year.
CPO sales decreased 19.4% last month compared to August, though September certified sales were up 6.7% year over year.
The average used-vehicle listing price climbed to $25,825, up from a revised $25,371 at the beginning of September and up 2% compared to the same period last year, according to Cox.
What they’re saying: “Used vehicle retail sales fell more sharply than new vehicle sales in September,” said Scott Vanner, manager of Economic and Industry Insights at Cox Automotive. “Seasonal patterns and affordability pressures were likely the main drivers of this pullback.”
Why it matters: Falling used vehicle sales and growing inventories signal slower turnover and margin pressure for dealers. With affordability keeping buyers on the sidelines, retailers will need to pivot toward lower-priced vehicles, discount strategically, and manage costs carefully to sustain profitability.
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Between the lines: Used vehicle inventory levels among both franchised and independent dealers reflected the slowdown, with both total supply and days’ supply up month over month, according to Cox Automotive.
Dealers held a total supply of 2.26 million used vehicles at the beginning of October, 3% higher than early September and 10% above the same time last year.
Days’ supply stood at 48 at the start of October, up four days from the upwardly revised level at the beginning of September and one day higher year over year.
Also worth noting: Used vehicles priced below $15,000 remain scarce, with just 34 days’ supply, 14 days below the overall industry average. The five top-selling models in September carried an average list price of $23,919, with Ford, Chevrolet, Toyota, Honda, and Nissan leading the brands.
Bottom line: Dealers should brace for a slower, more price-sensitive used car market as affordability challenges persist and lower-priced vehicles grow harder to find, putting renewed pressure on inventory management and pricing discipline heading into year-end.
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