Used Vehicle Prices Reach Three-Year High as Inventory Tightens
Used vehicle prices continued to climb in May, reaching their highest level in three years as inventory remained constrained across the market. According to Cox Automotive, the average used vehicle sold for $26,918, up 6% from a year ago. Dealer inventory stood at just over 2.1 million vehicles nationwide, representing roughly a 45-day supply. While sales volume increased 4% from April, overall inventory remains below historical norms, helping support higher prices despite affordability challenges.
For fleet operators, tightening used vehicle supply could provide a boost to resale values and remarketing performance. Demand remains especially strong for lower-priced vehicles, with models under $15,000 selling significantly faster than the overall market average. At the same time, improved credit availability is helping support consumer demand, even as higher prices create headwinds. Fleets planning vehicle replacements or disposals should continue monitoring used market conditions, as strong demand and limited supply are helping sustain favorable residual values.
Inflation and Credit Trends Signal Continued Cost Pressures for Fleets
Inflation accelerated in May, driven largely by higher energy prices rather than broad-based consumer demand. Gasoline prices rose 7% during the month and more than 40% year over year, pushing overall consumer inflation to 4.2%. Producer prices also climbed sharply, with gasoline, diesel, and transportation costs leading the increase. While underlying inflation remained relatively contained, rising fuel and transportation expenses continue to work their way through the economy and could place additional pressure on operating costs in the months ahead.
Volkswagen Closes 2026 Atlas Cross Sport Order Bank
Volkswagen has announced that ordering for the 2026 Atlas Cross Sport has officially closed, and no additional factory orders will be accepted for the current model year. Fleet operators considering the Atlas Cross Sport should work with their fleet representatives to identify any remaining dealer or pipeline inventory that may still be available.