June Sees Decline in Used Vehicle Sales
In a recent report by Cox Automotive, retail used-vehicle sales in June showed a slight decline of 1.5% compared to May, totaling approximately 1.46 million units. Despite the month-over-month dip, sales were up 2.4% compared to June of the previous year, indicating a year-over-year growth trend. This data, derived from Cox Automotive’s vAuto Live Market View, highlights the nuanced dynamics in the used car market as seasonal factors and fewer selling days in June played a role in the monthly decline.
Certified pre-owned (CPO) vehicle sales saw a sharper drop, falling 13.1% month-over-month to around 200,950 units. Compared to the same period last year, CPO sales were down by 3.7%, reflecting a more pronounced seasonal impact on this segment of the market. Analysts note that while these declines align with historical patterns for June, they underscore the challenges dealers face in maintaining momentum through the summer months.
Demand Remains Robust Amid Affordability Concerns
Despite the decline in sales volume, demand for used vehicles continues to be strong as consumers prioritize affordable driving options. An industry insights manager from Cox Automotive emphasized, 'Demand continues to remain robust as people seek affordable driving options.' This sentiment reflects a broader trend where economic pressures are pushing buyers toward more budget-friendly alternatives in the automotive market.
Inventory levels for used vehicles held steady in June, supporting the sustained demand. According to Cox Automotive’s analysis of vAuto Available Inventory data, listing prices have remained relatively stable, which helps maintain buyer interest. The balance between inventory and pricing is critical as affordability remains a key driver for many purchasing decisions in the current economic climate.
Outlook for the Used Car Market in 2025
Looking ahead, Cox Automotive’s 2025 outlook suggests optimism for the broader automotive market, with expectations of growth and improved affordability. The organization noted that the U.S. auto market ended 2024 with strong momentum, setting a positive trajectory for the year ahead despite some uncertainties. This forecast provides hope for a recovery in sales volumes, particularly if economic conditions continue to stabilize.
The focus on affordability is expected to persist, potentially benefiting the used vehicle segment as new car prices remain elevated for many buyers. As consumer sentiment shows signs of cautious optimism in early July, according to Cox Automotive’s Auto Market Report, there may be rising momentum for used vehicle sales in the coming months. Stakeholders in the industry will be watching closely to see if these trends translate into sustained growth throughout 2025.