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ANALYSIS: Used cars will no longer contribute to inflation. They should be a source of deflation in the months ahead.
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Higher interest rates, coupled with high gasoline prices and high vehicle prices, are keeping used sales in Q2 low.
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May’s CPO sales result is the lowest since February, also down over 22% from May 2021.
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Year to date, the total used-vehicle market is on pace to finish down more than 10% from 2021’s 40.6 million total.
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The overall used-vehicle market is experiencing a weaker spring than expected
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After including dealer and manufacturer fleet sales, the total fleet share of all sales was 14%, up 2% from April 2021's fleet share.
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Combined sales into large rental, commercial and government buyers were up over 4% year over year in April.
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Sales are likely to be slightly less this spring selling season.
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But they remain off last year's pace because limited new-vehicle inventory has slowed the gently used segment due to fewer trade-ins.
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At the end of March, the average listing price was $27,246, off record levels in December when it surpassed $28,000. The list price was down some from the end of February when it was a revised $27,609.
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