Used vehicle inventory levels are a solid indicator of where the used auto market is heading. At its most basic level, less supply is an indicator of an increase in demand. Cox Automotive data shows the downward trend in used car inventory is evident both over the last year and compared to this month last year. Used vehicle sales themselves rose by nine percent, a significant amount, in March compared to February, and sales were up 12 percent from last year. While March is already a strong month for used car sales historically, the trends illustrate a growing used market.
Used Car Sales Rise
In April 2025, used vehicle inventory at US dealers hovered around 2.14 million cars, which is down a little year over year. Meanwhile, inventory continues to move quickly, with buyers snapping up cars off lots within 39 days. This is notably the same trend we saw in 2021, when the pandemic led to a used car market boom. Predictably, the bottom end of the used car market has been hit hard in recent months, and buyers looking for cars under $15,000 are struggling with fewer choices and fast-selling cars.
These cars stay on lots for 11 fewer days than the 39-day average, giving buyers an average of just 28 days to find a prospective car and complete a purchase. As a result of increasing demand, prices for used cars have risen. Cox indicates that used price averages are trending upwards, but at $25,180, they are still slightly below last year’s average.
Uncertainty Drives The Used Market
Cox Automotive believes two things are driving the used market right now: tax refunds and tariffs. With buyers receiving their refunds, March and April are historically strong times for the used auto market. Tariffs are also a contributing factor. President Trump has created a lot of uncertainty in the new auto market as a result of his proposed tariffs. Some automakers, like Lotus, have laid off employees at home in the UK and canceled 2025 orders. Audi suspended US car shipments this month as a result of new tariffs, and others are promising to eat tariff price hikes for as long as they can in the hopes of keeping new buyers around.
TopSpeed’s Take
Without a doubt, affordability and demand are pushing buyers into the used market. Whether it is as a result of tariffs or other economic factors, the used car market is trending upward for now, and there are few indicators that things will slow. Owners looking to sell are in a good place, but it’s also going to be a tough time to get into a used car should the market continue its upward trend. For now, at least, it is unlikely the market will reach post-pandemic highs.
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