Used Vehicle Sales Decline 1.5 Percent in June: Cox Automotive

Demand continues to remain robust as people seek affordable driving options, an industry insights manager said.

Used cars at a dealership in Chicago on July 11, 2023. Scott Olson/Getty Images

Retail sales of used vehicles declined in June from the previous month amid an increase in wholesale prices, auto industry service company Cox Automotive said in a July 11 statement.

In total, 1.46 million units were sold last month, from both independent and franchise dealers, down by 1.5 percent from May but up by 2.4 percent from a year ago.

“The slight decrease in used-vehicle sales was anticipated following the spring surge, as this seasonal slowdown is typical for this time of year,” said Scott Vanner, manager of economic and industry insights at Cox.

“Demand remains robust as consumers seek affordable vehicle options and aim to get the most value for their money, with some potential new-car buyers turning to the used market instead.”

Sales of certified pre-owned (CPO) vehicles dipped 13.1 percent from the previous month and were down 3.7 percent year over year.

Cox attributed the monthly drop in CPO sales to having fewer sales days than in May and June 2024.

The decline in used vehicle sales in June coincided with wholesale prices rising for the month. Wholesale used vehicle prices in June were up by 1.6 percent from May and by 6.3 percent from a year ago, according to the Manheim Used Vehicle Value Index, Cox said in a July 8 statement.

Used vehicle prices have been rising since the beginning of the year. A May 22 report from automotive company Edmunds found that prices of 3-year-old used vehicles had surpassed $30,000 in the first quarter for the first time since 2023 amid supply pressures.

“The average age of trade-ins rose to 7.6 years in Q1 2025—up from 7.3 years a year ago and the oldest trade-in age Edmunds has recorded since Q1 2019—as more consumers returned to the market with older vehicles, further tightening near-new inventory,” Edmunds said.

“Add in the looming impact of tariffs on new vehicle pricing and availability, and it’s become clear that the mild price increases seen in Q1 could mark the early stages of a broader shift in the used market.”

The Trump administration has imposed a 25 percent tariff on vehicle imports in a bid to protect the U.S. auto manufacturing sector. President Donald Trump later signed an order preventing overlapping dues from being charged on the same vehicle to provide relief for automakers.

There is also a 25 percent tariff on auto part imports. An exemption has been granted to components that meet the U.S.–Mexico–Canada Agreement to maintain the stability of the North American auto supply chain.

The tariffs raise the prices of imported vehicles. As new vehicles become pricier, many people may look to buy used vehicles instead, triggering higher demand and pushing up used vehicle prices, which could climb higher if the supply of used cars is constrained.

Cox warned in a July 10 report that new vehicle inventory was growing. New vehicle listing prices remained flat last month, it stated.

The Trump administration has extended the deadline for imposing reciprocal tariffs on multiple nations to Aug. 1 from the earlier deadline of July 9. Cox said that the extension “means it could be the fourth quarter before we see any significant movement in overall consumer prices.”

“For now, patience remains a virtue, and attentive consumers may find value by tracking nuanced movements in pricing and inventory as the year progresses,” Cox said.

Trump recently announced a 35 percent tariff on Canadian imports and a 30 percent tariff on Mexican imports, with the tariff due to come into effect on Aug. 1.