Driving the news: Used car sales held steady at 1.53 million vehicles in May, but inventory continues tightening with just 43 days' supply—the lowest for this time of year since 2021, according to Cox Automotive.
For context: Sales were flat month-over-month but up 4% compared to last year, while total used vehicle inventory dipped slightly to 2.21 million units.
Average listing prices dropped modestly to $25,470, down 1% from a year ago.
Certified pre-owned sales slipped just 0.5% in May but remain 2.4% higher year-over-year.
Why it matters: The market is showing "remarkable stability" according to Cox Automotive's Scott Vanner, with consumer demand holding firm despite affordability challenges. However, the supply crunch is most severe for budget buyers. Cars under $15,000 have only 31 days' supply, five days lower than last year and 12 days below the industry average.
What we're watching: Vanner warned that next month's data could show dramatic year-over-year swings due to the anniversary of the CDK Global cyberattack that impacted sales reporting in 2024, cautioning that large shifts will reflect "data reporting rather than actual market shifts."
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