Critical Shifts:
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Inventory at Historic Lows: Used-vehicle inventory has plummeted to its lowest level since 2019. With only 1.95 million units available nationwide—an 8.3% drop in just one month—your primary challenge is no longer finding buyers, but simply keeping your lot stocked in the tightest sourcing environment of the decade.
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The Critical Shortage of "Budget" Cars: While the overall market has a 37-day supply, vehicles priced under $15,000 have vanished to a mere 27-day supply. For independent dealers, this means competition for affordable units is fierce; these "entry-level" cars are selling 11 days faster than the industry average.
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A "Spring Bounce" With Long Legs: March saw a 7% jump in daily sales pace, driven by healthy tax refunds and consumers fleeing high new-car prices. Because inventory is so thin, you have significant "pricing power"—average listing prices are rising, and the demand for the "value proposition" of used cars is expected to remain high well into the second quarter.
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According to Cox Automotive’s analysis of vAuto Live Market View data, March used-vehicle inventory levels declined for the third straight month and were lower year over year, falling to the lowest level since at least 2019, when the current vAuto data sets begin.
Backed by healthy tax refunds and continued affordability challenges in the new-vehicle market, the used-vehicle sales pace improved in March in a seasonally normal pattern, resulting in a significant tightening of days’ supply. Average listing prices increased modestly from February.
Nationwide, dealers – both franchised and independent – had a total supply of 1.95 million used vehicles on their lots in March. That figure is the lowest on record in the current data set dating back to 2019 and is 5.9% lower than a year ago. Available inventory volume is approximately 8.3% lower compared to the 2.13 million available in February.
The retail used-vehicle sales pace was strong in March, but lower by 2.9% compared to a year ago. Used retail sales volume in March is estimated at 1.62 million vehicles, up from the 1.37 million in February and at the highest level in a year. The daily sales pace in March was higher versus February by 7%.
March is typically the strongest month of the year for used-vehicle sales, and 2026 was no exception. While sales fell short of last year’s tariff-announcement-driven surge, March 2026 outperformed 2023 and 2024 and was in line with 2022 levels, when new-vehicle inventory was historically tight. Demand remained healthy throughout March, likely supported by strong tax refunds, continued improvement in credit availability, and the strong value proposition of used vehicles relative to new.
