Used vehicle inventory and asking prices are stabilizing while used supply remained flat in September compared to August, and is higher than a year ago, according to Cox Automotive analysis vAuto Available Inventoryv data released on October 14. Meanwhile, listing price growth is slowing.
The total supply of unsold used vehicles at dealer lots, both franchise and independent, across the United States stood at 2.46 million units at the end of September, roughly nearly the same as the revised number at the end of August and 10% higher than September 2021 .
The total day supply at the end of September stood at 50, compared to the revised supply of 52 days at the end of August. Day supply in September was 8 days higher than the previous year’s levels. Used vehicle inventories have remained at about this level since mid-January.
Cox Automotive’s day supply is based on the daily sale rate for the most recent 30-day period, in this case, ending September 26. Sales were 1.48 million vehicles, compared to a revised 1.43 million at the end of August. For the month of September, Cox Automotive estimates used retail sales were down 8% from August and down 10% from a year ago.
The average listing price for a used vehicle was $28,237 at the end of September, up from the revised price of $28,064 at the end of August. That price is just $1,686, or 6%, from a year ago.
“It may well be that higher interest rates are starting to hurt demand for used vehicles because consumers can’t afford the higher monthly payments,” said Charlie Chesbrough, senior economist at Cox Automotive, in a press release. “Slowing sales and building up inventory may force dealers to lower prices in the coming months.”
As with new cars, the lower the price, the tighter the inventory. Days supply increases with each $10,000 increase in price category. The day supply for vehicles under $10,000 is 33. In contrast, the day supply for vehicles over $35,000 is 65.
Also, similar to new vehicles, Toyota, Subaru and Honda have the lowest used vehicle days of supply at around 44.
Originally posted on Remarketing of vehicles