Last month, the average listed price for a used car in America was $26,651 — down 1.4% from July’s figure. July’s price was 0.5% less than June’s.
But analysts say the drop may not last. The nationwide supply of used cars shrank on strong sales in August, according to Kelley Blue Book parent company Cox Automotive.
Inventory Shrinking
America’s car dealers have about 2.25 million used cars in stock awaiting sale. That’s 9% lower than inventory numbers from a year ago. Dealers would sell out of used cars entirely after 44 days if they couldn’t acquire more. That’s well below the number they prefer to keep in stock, though it doesn’t approach pandemic-era lows.
Analysts say America’s used car supply will remain low for years post-pandemic. Automakers sold about 8.1 million fewer cars thanks to the pandemic than they might have without it. That means 8.1 million cars will never enter the used car market, keeping prices higher for years to come.
“Used-vehicle inventory had been increasing after hitting a low point in March,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. “But that increase in inventory stalled in the middle of July and into August, as sales unexpectedly picked up.”
Cheapest Cars Hardest to Find
As with new cars, and as has been the case for months, the lower the price segment, the tighter the inventory. Used vehicles priced under $10,000 had a days’ supply of 30, with days’ supply increasing with every higher price segment to the over-$35,000 category with the highest days’ supply of 56.
Honda, Subaru, Toyota, Nissan, and Hyundai were the non-luxury brands with the lowest inventory of used vehicles at the beginning of September. Honda had 36 days’ supply. Subaru, Toyota, and Nissan all had 38 days’ supply, with Hyundai at 39. They were the only brands with sub-40 days’ supply. Most mainstream brands — both luxury and non-luxury — had used-vehicle days’ supply under 60.
