Used vehicle listing prices typically decline in the first month of the year, with this year’s decline slightly smaller than in the previous two years.
Retail used vehicle sales in January increased monthly compared to December and were up 8% yearly compared to January 2024, according to an analysis of Cox Automotive’s vAuto Live Market View data estimates released Feb. 14.
In January, 1.41 million used vehicles were sold at retail — from franchised and independent dealers. The days’ supply of used vehicles at the start of January was 48, two days lower than the downwardly revised December level.
“Used retail vehicle sales usually rise this time of year. Although this year’s sales percentage increase exceeds last year’s, it is still below previous years,” said Scott Vanner, senior analyst of economic and industry insights at Cox Automotive, in a news release.
The vAuto Live Market View database guides sales pace and volume over time. Based on registrations and other sources, full-year sales volume is updated annually.
Used Vehicle Inventory Increases
In related numbers vAuto released on Feb. 14, used-vehicle inventory levels increased from January to the start of February but were lower than in early February 2024.
As February opened and tax season began, the total supply of used vehicles on U.S. dealer lots — franchised and independent — was 2.23 million units, up from 2.22 million units at the start of January but down 3% from a year ago.
The Cox Automotive days’ supply is based on the estimated daily retail sales rate for the most recent 30-day period. The supply of used vehicle days was 48 at the beginning of February, down two days from the beginning of January and down five days compared to last year. The supply of used days remains tight, down nearly two days compared to 2019 levels but above what we saw in 2021 when there was a significant used-vehicle shortage.
Used Vehicle Prices Edge Down Last Month
The average used vehicle listing price was $25,128, down from the revised $25,780 at the start of January and now down 2% from a year earlier. Used vehicle listing prices typically decline in the first month of the year, with this year’s decline slightly smaller than in the previous two years. Retail used vehicle listing prices were consistently lower in 2024 compared to 2023 levels, and that trend continued in early 2025, when retail used vehicle listing prices were below last year’s levels.
Affordability remains challenging for consumers, and supply is more constrained at lower prices. Used cars below $15,000 continue to show low availability, with only 35 days’ supply, nine days lower than last year and 11 days below the overall industry average.
The top five sellers of the month were listed at an average price of $23,516, about 6% below the average listing price for all vehicles sold. Once again, Ford, Chevrolet, Toyota, Honda and Nissan were the top-selling brands, accounting for 51% of all used vehicles sold.
Used Market Forecast and Outlook for 2025
Cox Automotive is forecasting retail used-vehicle sales in 2025 to reach 20.1 million, an increase of about 1.2% compared to 2024. Sales growth is expected to remain muted, as retail and wholesale supply will be constrained in the coming year due to lower production during the pandemic and fewer lease maturities returning to the market.
For 2025, Cox Automotive forecasts growth in every sales metric except certified pre-owned sales. CPO sales are anticipated to drop by 1.6% in 2025 to 2.5 million due to fewer lease maturities.
CPO Sales Decrease Month Over Month in January
While retail used-vehicle sales increased, certified pre-owned (CPO) sales decreased month over month in January, according to data reviewed by Cox Automotive. CPO sales in January were up 0.7% yearly. This month-over-month decrease is likely due to not having one fewer selling days in January and the tight supply of off-lease and trade-in vehicle units. January’s CPO sales are estimated at 203,071, down from 216,955 in December, marking a 6.4% decrease.
