The used vehicle market started the year strong.
Used retail sales were up 16 percent in January from December, according to Dealertrack numbers released Tuesday as part of the Manheim Used Vehicle Index .
The data also showed January sales were up 5 percent year over year, even as buyers navigate increased interest rates and a limited supply of vehicles. Used car interest rates are on average above 12 percent.
We mentioned in December, 2023 was going to be a banner year. The January results shows we’re off to a good start.Jeremy Beck, NIADA Vice President of Dealer Development
“We mentioned in December, 2023 was going to be a banner year. The January results shows we’re off to a good start,” said NIADA Vice President of Dealer Development Jeremy Beck.
“We encourage our used car dealers to continue to be diligent in their inventory trends — age, average amount and type of vehicles — to be set up to meet the needs of consumers, as we continue to fight inflation, inventory price pressures and global economic issues.”
Sales were increasing, while inventory remains tight. Data from vAuto shows January ended with 44 days of supply. That was down from 56 days in December. It was also down from January 2022, which ended with 50 days supply.
Wholesale used vehicle values made a slight gain in January. The Manheim Used Vehicle Value Index rose to 224.8, a gain of 2.5 percent from December. Values remain down 12.8 percent from a year ago, when the index hit its all-time high of 257.7. Values are up more than 80 points from January 2019.