Car shoppers have suffered from low inventory and high prices for several months. But new data from Cox Automotive suggests relief might be in sight. According to Cox, used car inventory grew in January due to weaker sales. As a result, the average list price of used cars dipped from the record levels seen in December 2021.
More Supply Equals Lower Prices
Cox Automotive's data shows 2.55 million used cars sitting on dealer lots at the end of January. That is up from 2.38 million at the end of December. It is also a 1% increase over January 2021.
The days’ supply of unsold used cars at the end of January was 56. That is up from 51 at the end of December. The days’ supply at the end of January was 26% higher than a year earlier.
Used-vehicle sales in January were down 1% from January 2021. The seasonally adjusted annual rate (SAAR) for January was 39 million. That is down from 39.3 million in January 2021.
The average listing price of a used vehicle at the end of January was $27,633. That number is 29% higher than in January 2021, but below the peak levels seen last year, which topped over $28,000.