Kelley Blue Book: Used car supply is still stuck at low levels

by | Oct 16, 2023 | Stock Market

America’s car dealers started the month of October with about 2.26 million unsold cars on lots — 8% fewer than a year ago. At current sales rates, 2.26 million is about a 47-day supply of used cars. That’s well below the 60-day supply car dealers traditionally aim to keep in stock.

Nationwide inventory stuck at low level “The number of used vehicles available for purchase has remained higher than the low point seen in early April,” said Chris Frey, senior manager of Economic and Industry Insights at Cox Automotive. “However, the overall used-vehicle inventory volume is still considered to be limited and has been stuck in the 2.2-2.3 million range for the past four months.” Cox Automotive is the parent company of Kelley Blue Book.Not good news for prices Thin supplies mean higher prices. Prices fell slightly in August, but analysts think that dip could be short-lived. The wholesale prices dealers pay at auction for the used cars they later sell began to rise in late August after months of declines. Wholesale price trends usually become retail price trends after about six to eight weeks. Related: Used cars for less than $20,000 have ‘nearly vanished,’ study saysPandemic will affect supply for years Kelley Blue Book analysts expect used car prices to remain generally high …

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