Used-vehicle market posts late-year gains as inventory stays tight

Cox Automotive data shows higher December sales, steady inventory and modest cooling expected in 2026.

On the Dash:

• Retail used-vehicle sales increased year over year and month over month in December, an uncommon seasonal result.
• Inventory remains constrained at 49 days’ supply, with limited availability of lower-priced vehicles.
• Cox Automotive expects modest sales declines in 2026 due to supply limits and softer buying conditions.

Retail used-vehicle sales increased in December, closing out 2025 with stronger-than-expected momentum despite a period that typically brings slower activity, according to Cox Automotive‘s vAuto Live Market View data.

Dealers sold an estimated 1.34 million used vehicles at retail in December, up 3% from a year earlier and 2% higher than November. The gains came from both franchised and independent dealers and marked an unusual finish to a year that consistently outperformed expectations.

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Used-vehicle inventory remained tight but stable entering 2026. As of Jan. 1, dealers nationwide held about 2.20 million used vehicles in stock, unchanged from December and 5% higher than the same time last year. Days’ supply stood at 49, down one day from December but up one day year over year. Supply levels remain more than 10 days lower than early 2019, underscoring ongoing constraints.

Certified pre-owned sales also improved in December. CPO deliveries rose 1.7% from a year earlier and jumped nearly 8% from November, reaching an estimated 220,803 units. Total CPO sales for 2025 finished at about 2.61 million, up 2.1% year over year and slightly ahead of expectations.

Pricing pressures edged higher as sales momentum built. The average used-vehicle listing price reached $26,043 at the start of January, up about 1% from both a year earlier and the prior month. Affordability remains a challenge at the lower end of the market. Vehicles priced below $15,000 carried just 38 days’ supply, well below the industry average.

Ford, Chevrolet, Toyota, Honda and Nissan again led used-vehicle sales, accounting for half of all units sold. The top five sellers averaged prices nearly 8% below the overall market average, reinforcing buyer demand for value-oriented inventory.

Looking ahead, Cox Automotive forecasts retail used-vehicle sales of 20.3 million units in 2026, a slight decline from 2025. Lower production volumes and limited lease returns are expected to constrain supply, even as lease maturities gradually increase. CPO sales are also projected to ease modestly, reflecting tighter inventory and softer buying conditions.