Driving the news: Retail used-vehicle sales hit 1.34 million units in December, up 3% year-over-year and 2% from November, according to Cox Automotive.
For context: Used car sales typically decline in December. But 2025 bucked the trend with a surprising acceleration likely due to better auto loan access and the affordability advantages used cars have over new ones.
By the start of January, dealers had 2.2 million used vehicles on their lots, 5% higher than last year but flat compared to early December.
Days' supply stood at 49 at the beginning of January, down one day from December but up one day year-over-year.
What they're saying: "December showed unusual growth during a month that typically sees a slowdown, capping off a used-vehicle market that exceeded expectations in 2025," said Scott Vanner, manager of Economic and Industry Insights at Cox Automotive. "However, we anticipate a modest sales decline in 2026 as economic pressures and constrained supply from lower production volumes continue to weigh on the market. That said, Q1 could be a bright spot with strong sales driven by larger-than-expected tax refunds."
Bottom line: Cox forecasts used retail sales will decline mildly by 0.7% in 2026.
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