Used-Vehicle Supply Falls, Prices Up
Cox shows September activity rebalanced the market.

Nonluxury brands at lower price levels had tighter supply, including Toyota.
IMAGE: Toyota
Used-vehicle inventory is tightening, and prices are consequently up after falling in the second quarter, Cox September data shows.
Used supply fell 8% year-over-year to 2.26 million units at month’s end, and days’ supply fell by two days to 47 and by seven days year-over-year, Cox said.
“The number of used vehicles available for purchase has remained higher than the low point seen in early April,” said Cox Senior Manager of Economic and Industry Insights Chris Frey. “However, the overall used-vehicle inventory volume is still considered to be limited and has been stuck in the 2.2-2.3 million range for the past four months.”
Inventory was tighter for the lower price segments, and Honda, Mazda and Toyota had the tightest supply among nonluxury brands, Cox said.
Frey said the United Auto Workers strike against the big three automakers in Detroit has so far had minimal effect on the market but could be impactful if it continues.
The average used-vehicle listing price rose month-over-month to $26,717, Cox said, though that’s still down 5% year-over-year. Wholesale prices also rose, by 1%; that was down about 4% year-over-year. Cox credited increasing used retail demand, which it said tightened supply and sent more dealers to wholesale.
It predicts stable prices in the fourth quarter. “We have achieved balance between buyers and sellers,” said Cox Chief Economist Jonathan Smoke.
Originally posted on Auto Dealer Today
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