Used vehicles have become a vital market this year for any buyers looking for affordability. With new vehicle prices still high and import tariffs threatening to make them even higher, consumers are flocking to used cars at an increased rate. While this has helped many land a good deal on their next vehicle, it has slowly begun to eat at existing inventory across the U.S.
As of early June, the used vehicle inventory on U.S. dealer lots was down slightly to 2.21 million units, compared to 2.22 million in May according to Cox Automotive. While this represents a stable position year-over-year, key metrics such as days’ supply reveal a tighter supply landscape. The days’ supply of used vehicles dropped to 43, a decline from the revised 44 days in May. It is also three days lower than pre-pandemic levels in 2019. This marks the lowest level for this time of year since 2021, underscoring ongoing constraints across the supply chain due to tariffs.
Since affordability continues to be top of mind for consumers, it is no surprise that the lower price segments are seeing the lowest supply. Vehicles priced under $15,000, which have long been crucial entry points for many buyers, remain scarce with just 31 days’ supply. That is 12 days below the industry average and five days fewer than a year ago.
Prices Are Steady, But Cost Still a Challenge
For the second consecutive month, used vehicle prices saw a small decline. The average listing price dropped to $25,470 in early June, down from $25,490 in May and one percent less than last year. This pricing stabilization follows increases earlier in the year and reflects the pressures of constrained inventory. The consumer chase for affordability is not going to end any time soon.
The most popular vehicles sold were primarily dominated by well-known brands like Ford, Chevrolet, Toyota, Honda, and Nissan. The top five selling models averaged $23,779, approximately seven percent lower than the industry-wide listing price for used vehicles, providing more accessible choices for budget-conscious buyers.
Retail Used Vehicle Sales Stay Strong
Despite the tightening inventory, retail used vehicle sales held firm. Approximately 1.53 million used vehicles were sold in May, matching April’s figures and representing a four percent increase year-over-year. Mainstream brands continued to dominate the sales landscape, as consumer’s search for used vehicles from brands they can trust.
Certified pre-owned sales also reflected this sales stability, with May’s figures reaching 231,137 vehicles. While slightly down from April’s 232,267 units, this represents a 2.4 percent increase compared to May 2024 and maintains a 3.5 percent year-to-date growth following last year.
“While used-vehicle inventory dipped slightly in May, the market remains remarkably stable,” said Scott Vanner, manager of Economic and Industry Insights at Cox Automotive. “Steady sales and a modest decline in listing prices suggest that consumer demand is holding firm – even as affordability challenges persist. The resilience we’re seeing, especially with strong performance from mainstream brands, underscores a healthy used-vehicle sector heading into summer.”
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