Used Vehicle Sales Jump 16 Percent in February: Report

The supply of lower-priced used cars has become tighter, affecting people looking for affordable options.

Used cars are offered for sale at a dealership in Chicago on July 11, 2023. Scott Olson/Getty Images

The number of used vehicles sold in the United States rose 16 percent from January to February, with inventories signaling a tightening of supply, according to automotive services company Cox Automotive.

“A total of 1.57 million used vehicles were sold at retail—from both franchised and independent dealers—during February, up 6 percent year-over-year,” the company said in a March 14 statement.

The year-over-year increase in February continued the trend from January when sales had also risen from 2024.

Scott Vanner, senior analyst of economic and industry insights at Cox, said that although used-vehicle sales usually increase from Janury to February, “this year’s 16% increase is the largest jump seen in recent years.”

There were 42 days’ worth of supply of used vehicles at the beginning of March, down eight days compared to the start of February, suggesting a potential tightening in supply conditions.

While sales of used cars rose last month, prices fell. The average used-vehicle listing price was $25,006 in February, a decline on both a monthly and annual basis, said another Cox report.

Since the supply of used vehicles has tightened when it comes to lower-priced models, many consumers targeting this segment continue to face challenges.

“Used cars below $15,000 continue to show low availability, now with only 30 days’ supply, five days lower than the same time last year and 12 days below the overall industry average,” the report said.

“The top five sellers of the month were listed at an average price of $23,531, about 6 percent 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 percent of all used vehicles sold.”

According to a Feb. 26 report by automotive research company Edmunds, discounts given to new vehicles in 2024 resulted in a lowering of certain used car prices.

People could face a more “challenging environment” this year when it comes to buying a used vehicle, with the market facing an “inventory crunch.”

“Three-year-old used vehicles are the cornerstone of the used car market: They are typically the most desired, generally still offer some form of factory warranty, and represent a good value for those uninterested in spending new-car money,” the report said.

The year “2025 will be defined by its dearth of these popular models because 2022 was one of [the] lowest new-car sales volume years in recent memory with only 13.8 million sales (the lowest since 2011’s 12.8 million sales),” it said.

Recent tariffs announced by the Trump administration against Mexico and Canada could also potentially affect used vehicle prices.

The administration imposed 25 percent tariffs on the two bordering nations on March 4, citing the ongoing issue of fentanyl trafficking. However, a one-month exemption was granted to automakers after representatives of Ford, GM, and Stellantis made a request to the president.

Both countries are key auto suppliers to the United States, with Mexico accounting for 13.6 percent and Canada 4.5 percent of the new light vehicles sold in America last year.

A 25 percent tariff would result in additional costs of $6,250 for a $25,000 car coming in from Canada or Mexico.

An increase in new vehicle prices due to these and other tariffs could prompt buyers to switch to used ones, adding upward pressure to used car prices.