The key metrics of the used vehicle market are either slightly down or barely up, but affordability remains a challenge.
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While the market digests the impact of tariffs, it could see slightly higher levels of wholesale depreciation over the summer.
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April figures show an electric vehicle market facing several challenges that reflect broader economic trends.
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As the effects of the “spring bounce” and initial pull ahead from tariffs diminished, sales decreased in April.
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Consumer confidence plunges worse than expected across leading indexes after tariffs and added import duties seep into automotive markets.
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As April opened, the total supply of new vehicles on dealer lots across the U.S. was down 10%+ and counting with days' supply down to 10.
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Uncertainties in policy changes are creating challenges for automakers as they await further information.
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The tightening of days' supply for new and used electric vehicle markets shows healthy consumer interest.
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Cox Automotive is forecasting retail used vehicle sales in 2025 to reach 20.1 million, an increase of about 1.2% compared to 2024.
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The market moves reflect an ideal blend of improved consumer sentiment, bigger discounts, and evident optimism in the market.
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