Used, New Inventories Tell Different January Stories
Used sales, buoyed by EV shoppers, cut into supply while harsh winter put a damper on new-vehicle business, padding inventory.
Despite the supply decline, the average used-vehicle listing price fell 4% year-over-year, though it's still far higher than prepandemic levels.
IMAGE: Pexels/Tom Fisk
Used-vehicle inventory fell in January as new-vehicle supply grew.
Used sales, though flat year-over-year, rose over December numbers, leading to a 2.5% drop in that segment’s supply over the month to 2.3 million units, though that’s up year-over-year by 7%, Cox Automotive said. Days’ supply stands at 49, down 16% month-over-month but up 1% year-over-year.
Used electric vehicle sales figured in the supply dip, Cox said, eating up some inventory.
Despite the supply decline, the average used-vehicle listing price also fell 4% year-over-year to $25,328, which is still far higher than prepandemic levels, Cox said. It expects used supply to revive later this year.
New Supply Balloons
Meanwhile, slowed new-vehicle sales padded inventory in that segment to its highest level since early in the pandemic.
Days’ supply stood at 80 at the end of January, up 38% year-over-year and the most since June 2020, when it was 83, Cox said. That amounts to 2.6 million units, up a dramatic 50% year-over-year.
The supply bump resulted from January new-vehicle sales falling to a 15 million seasonally adjusted annual rate, which Cox pegged as the lowest SAAR since last March. It blamed a rough winter in many parts of the country, as the average listing price was actually down 1% year-over-year to $47,142.
Originally posted on Auto Dealer Today
More Industry
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →