In November 2024, the average price of used cars in the United States settled at $25,565, reflecting a 2.6% decline from the $26,239 recorded in the same month last year. Despite the price dip, the market remains challenging for buyers as inventory continues to shrink, especially at lower price points.

Inventory Trends and Sales Data

Dealers began December with an average of 46 days’ worth of supply, down from 57.8 days in December 2023. Lower-priced vehicles are vanishing even faster, with just a 34-day supply for cars priced below $15,000—a significant nine-day reduction compared to last year.

On the sales front, November saw over 1.41 million used vehicles sold, a 13% increase from November 2023. Certified pre-owned (CPO) vehicles continue to gain popularity, with 208,708 CPO units sold in November—up 2.7% from the previous month.

Key Insights from Industry Analysts

Scott Vanner, senior analyst at Cox Automotive, noted that the strong sales trends are unusual for Q4, a period typically characterized by slower activity due to weather and holiday-related distractions. Vanner emphasized the tightening supply, particularly for affordable vehicles, as a key factor driving current market dynamics.

The Rise of Certified Pre-Owned Vehicles

CPO vehicles have become increasingly attractive to buyers due to their manufacturer-backed warranties and reliability. This trend reflects a shift in consumer preferences toward value-added options, even at a slight premium over standard used cars.

While the market shows signs of softening prices, the scarcity of lower-priced options and the growing demand for certified pre-owned vehicles underscore the evolving challenges for both buyers and dealers in the used car market.