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The higher prices at used retail reflect strong wholesale values earlier in the spring, particularly for older, more affordable vehicles.
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Trends continue to normalize after a strong start to the year, as consumers contend with higher gas prices in the coming summer months.
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Franchised and independent dealers had a total of 1.95 million used vehicles in stock in March, the lowest on record in the current data set.
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Wholesale values moved even faster than expected on the back of strong retail demand, driving the MUVVI to its highest reading since September 2023.
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Vehicle buyers are seeing a favorable purchasing window, with factors such as declining prices, improving used vehicle credit rates, and continued gains in credit availability.
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Better affordability compared to new vehicles and a larger selection of newer model year vehicles rank among the drivers of this market.
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As the month progressed, used retail sales were higher each week, ending with tighter inventory levels.
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EV buyers took advantage of the final federal tax credit days, while average prices edged up for new EVs and continued to decline for used models.
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Consumers are buying up electric vehicles ahead of the Inflation Reduction Act’s tax credit expiration amid strong demand and tight inventory.
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The used market especially benefits from consumers seeking more affordable alternatives than those offered in the new car segment.
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