January Used Vehicle Sales Rise, But Inventory and Affordability Remain Challenges
Retail used vehicle sales increased in January, rising both month-over-month and 8% year-over-year, with 1.41 million units sold. Used vehicle inventory levels grew slightly from January to early February but remained 3% lower than a year ago. The days' supply of used vehicles tightened to 48 days, reflecting continued constraints, particularly in lower-priced segments.
Used vehicle prices declined slightly, with the average listing price dropping to $25,128, 2% lower than the previous year. Affordability remains a challenge, especially for vehicles under $15,000, where supply is notably tight. Ford, Chevrolet, Toyota, Honda, and Nissan remained the top-selling brands, accounting for 51% of sales.
Cox Automotive forecasts retail used-vehicle sales to reach 20.1 million in 2025, a 1.2% increase from 2024. However, certified pre-owned (CPO) sales declined in January, down 6.4% from December, and are expected to drop 1.6% in 2025 due to constrained supply.
Gas Prices Rise Nationwide, West Coast Sees Sharp Increases
Gasoline prices have been rising for the second consecutive week, with the national average reaching $3.14, according to the U.S. Energy Information Administration (EIA). While prices are down by 12 cents from last year, sharp increases on the West Coast, driven by refinery maintenance and outages, have impacted neighboring states. The West Coast saw the largest price hike, up 15 cents, while the East Coast experienced a slight decrease. Although most regions have seen relatively stable prices, refinery maintenance and the transition to summer gasoline blends may cause price increases in the coming weeks. The cheapest states for gas are Mississippi, Texas, and Louisiana, with 20 states now averaging $2.99 or less per gallon, down from 27 at the start of the year.
Nissan Extends Tier 4 Growth Program Through March 7, 2025
Due to strong participation and to further support business growth, Nissan has extended the Tier 4 Growth Program through the next model cut-off date of March 7, 2025.