Used vehicle sales are expected to increase slightly in 2024.
In the 2024 Cox Automotive Industry Insights presented Monday, the annual forecast predicts 36.2 million used vehicle sales. That is up from the 35.9 million estimate in 2023.
The used retail sales are expected to top 19.2 million, up from 19 million in 2023.
“The used market starts a multi-year recovery, but is limited by supply while affordability constrains demand,” said Jonathan Smoke, the chief economist at Cox Automotive.
Certified pre-owned sales will grow by 100,000 vehicles to 2.7 million, according to the Cox Automotive forecast.
Used retail prices decreased slightly in 2023, dropping 4 percent to nearly $26,000. Prices ended 2022 north of $27,000. Used retail sales finished 2023 down 3 percent for the year while seeing a 4 percent increase year over year for December.
Used retail inventory also has been on the rise. It was up 2 percent or 37,000 vehicles from 2022. The days of supply hit a high point for the year in December at 56 days.
Interest rates started to decline at the end of 2023, but remain elevated at just under 14 percent for used vehicles.
“Interest rates are the factor that’s changed the most in the past two years,” Smoke said.
