Demand for used cars is growing, with data indicating people are scooping up pre-owned rides at a faster pace lately. That’s according to Cox Automotive, which used its vAuto Live Market View data estimates to conclude 1.52 million used vehicles were sold through dealers in the month of July.
Woman laughs in mugshot after vandalizing her ex’s car.
That’s enough for an 8.9 percent increase in volume versus June of this year or a 7.0 percent increase versus July 2024. Plus, Cox says the days’ supply of used cars at dealerships in the US sits at 43, down four days four days versus in early July and down two days versus a year ago.
In other words, people are scooping up a lot of used rides from dealerships as inventory decreases.
We know not everyone buys used cars from dealerships. In fact, a lot of savvy shoppers go private party, oftentimes getting a better vehicle at a better price. But a lot of people just go to a place that offers financing and stale popcorn, so this is an indication of what’s happening in the overall market.
It seems apparent more people are going for used cars for the same reason anyone would: to save money. The savings are bigger than ever before, with new vehicles selling for ridiculous amounts these days, something we’ve harped on a lot.
Part of the problem with that strategy is as more people turn to the used market, the increased demand can in turn increase prices. It’s possible that with some models, this in turn makes buying anything used a financially dumb move.
We don’t think that’s happened overall in the market.
Scott Vanner, manager of Economic and Industry Insights at Cox Automotive says while new car prices are driving used vehicle sales, he believes there’s “some added momentum from gradually decreasing credit rates and improved credit access.”
Considering some lenders had pretty lofty standards last year, that would make a difference.
Source: Cox Automotive
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