Americans bought 7% more used cars in October than in September. The shopping surge came despite a slight uptick in the listing price of the average used car last month.
The news comes from Kelley Blue Book parent company Cox Automotive, which also owns vAuto, a software company that helps car dealerships manage sales and inventory.
According to vAuto, “A total of 1.4 million used vehicles were sold at retail – from both franchised and independent dealers – during October, up 12% year over year.” That left the average used car dealer with a 45-day supply of used cars, down from 48 in October and well under the 60-day average many aim for.
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Americans may be heading back to the sales lot because it’s growing easier to qualify for a loan. Loan approval rates and interest rates have improved for consumers after two recent cuts to the Federal Reserve’s benchmark interest rate.
Sales of Certified Pre-Owned cars slightly lagged, down 1.9% year over year. That may be happening because dealers have fewer CPO units to offer. Leasing declined dramatically during the COVID-19 pandemic, denying dealerships a steady supply of lightly used, recent-model cars they usually depend on to support CPO programs.
