Used Vehicle Sales Down 14% YOY in October

Total used-vehicle sales in October are estimated to be near 2.8 million units, down 14% from October 2021, Cox Automotive reported Nov. 15. The seasonally adjusted annual rate, or SAAR, is estimated to have finished near 35 million, down from last October’s 40.7 million level but above September’s downwardly revised 33.8 million pace. Used retail sales were also estimated to be lower in October.

Charles Chesbrough, senior economist at Cox Automotive, said in a news release, “Rising interest rates are making some used vehicles too expensive, and it is taking some potential buyers out of the market. As rates continue to rise through 2022, demand may take a larger hit and vehicle discounting may need to occur to get buyers able and interested again in purchasing.”

Retail used-vehicle sales — the volume of vehicles sold via a dealership, thus removing private party sales — are estimated to be down 13.2% from October 2021. The used retail sales pace ticked down to 18.5 million in October from September’s downwardly revised 17.8 million level.