With used vehicle sales down 6.3% in the third quarter and a likely seasonal slowdown in demand in November/December, it’s not surprising to see used inventory levels increasing. In November, the CarGurus Used Vehicle Availability Index reading came in at just over 96, an increase of 6.9% from October – yet, compared to last year, things are relatively flat with inventory up just 0.6% from last year. However, it is surprising to see that even with demand slightly down, we saw no relief on pricing.
The average used vehicle listing price increased 2% from October, which is a slower rate of growth than previous months – however, it is still a significant increase. The year-over-year comparison is more eye-catching, though, where prices are now up 35.6%. This shows that even seasonality is not capable of reversing the increase in average prices we’ve seen during the current inventory shortage.
Used average days-on-market saw an increase of 3.2% from October, which lines up with what we’re seeing in inventory index values and expected seasonality trends. However, it is interesting that the index rating is down 23.5% from last year. As we dive deeper into the data, it looks like the ongoing inventory shortage has led to a reduction in longer-sitting inventory, which in turn has brought down the monthly average as new ‘younger’ vehicles have replaced them.
To learn more about the trends impacting vehicle inventory, download the CarGurus UK Vehicle Availability Index & Insights November 2021.