Sales for used vehicles picked up in February, continuing to increase for eight weeks in a row before peaking towards the latter half of March. Affordability matters more than ever to consumers, and declines in used-vehicle prices help offset higher interest rates.
Photo: Lincoln
Retail used-vehicle sales in March increased from February and were up by 18.5% month over month, according to vAuto Live Market View data estimates released April 15.
A total of 1.66 million used vehicles were sold at retail – from both franchised and independent dealers – during March, up 10.9% year over year and the highest volume since March 2022. In what is usually a high month for used-vehicle sales, sales in March reflected the seasonal trend. Days’ supply dropped to 44 at the beginning of March, down from a revised 53 at the beginning of February.
“As we move into spring, sales for used vehicles typically rise and we saw that trend continue this year with strong demand,” said Jeremy Robb, senior director of economic and industry insights at Cox Automotive, in a news release. “Sales for used vehicles picked up in February, continuing to increase for eight weeks in a row before peaking towards the latter half of March. Affordability matters more than ever to consumers, and declines in used-vehicle prices help offset higher interest rates. Once tax return season got underway, many consumers had more income to use as a down payment, driving customers into retail dealerships.”
The retail used-vehicle sales estimates are based on observed unit changes tracked by vAuto, which specialized in inventory management. March’s used sales total of 1.66 million was higher than March 2023 but remained lower than 2019 to 2022, when March retail used-vehicle sales averaged 1.95 million.
Certified Pre-Owned Vehicle Sales Volume Remains Strong
Both overall retail used-vehicle sales and sales of certified pre-owned (CPO) vehicles increased in March, according to data reviewed by Cox Automotive. CPO sales in March were up 1.1%, or over 2,400 units, compared to March 2023. CPO sales last month are now estimated at 231,927, up from 210,741 in February, an increase of 10.1%, a little below typical for this time of year. Year-to-date CPO sales are running 1.1% above last year.
