April: 2% Decline in Used Vehicle Volume

Used vehicle sales decreased 2% year-over-year in April, in large part due to two fewer selling days compared to the year before, noted Cox Automotive in its May 2018 Industry Update.

Certified pre-owned sales were also down in April, falling 5.7% year-over-year, according to Cox Automotive’s report. On a year-to-date basis, however, CPO sales are up 2%, signifying that weaker CPO sales in April have been offset by CPO sales through the rest of the year.

The used seasonally adjusted annual rate (SAAR) for April was 39.7%, the highest of the year, according to Cox.

Looking at new-vehicle sales, volume was down 7% year-over-year. Fleet segments were up across the board, however, as commercial fleet sales increased 9%; rental fleet sales increased 7%; and government fleet sales increased 1%, according to Cox.

“Spring demand was strong and favored larger price gains in non-luxury vehicles and compact cars. Even with gas prices up 22% YOY, consumer sentiment remains close to a 14-year high. Demand should continue to be strong, but eventually higher rates and declining purchase power may slow down the pace of sales,” noted Cox Automotive’s report.