According to Cox Automotive’s analysis of vAuto Live Market View data, used-vehicle inventory increased in May as the retail sales pace slowed. Average listing prices rose for the third consecutive month, reaching $26,918, the highest since mid-2023 and up 6% year over year.

Combined franchised and independent auto dealers had a total supply of 2.12 million used vehicles on their lots in May. Volume is down 0.6% compared to a year ago but increased 4% from April. Despite the monthly gain, used-vehicle inventory remains tight by recent historical standards.

The retail used-vehicle sales pace slowed in May, down 3.9% compared to a year ago and down 2% from April. Total retail volume is estimated at 1.45 million. Growing economic pressures and rising vehicle prices likely weighed on demand. At the same time, improving credit availability, which reached its highest level since April 2022, and the continued value proposition of used vehicles relative to new most likely provided an offset. Ford, Chevrolet, Toyota, Honda, and Nissan were the top-selling brands again in May, accounting for nearly 50% of all used vehicles sold.

New-vehicle sales in May were up more than 7% year over year in May, according to Kelley Blue Book estimates, a notable divergence between the two markets.

The Cox Automotive days’ supply is based on the estimated daily retail sales pace for the most recent month. Days’ supply of used vehicles in May was 45, up 1 day year over year and up 2 days from the revised April measure of 43. Compared to April, inventory volume was up 4% while the sales paced decreased 2%, resulting in 6.1% increase in days’ supply.

The average used-vehicle listing price was $26,918 in May, up 6% compared to the levels observed a year earlier and higher by 2.2% from the revised-lower $26,329 recorded in April, marking the third consecutive month of above-normal gains.

While listing prices increased across every segment, age group, and price tier, the overall increase was driven primarily by a shift in what sold. Both inventory and sales of vehicle priced under $20,00 declined in April, while sales of higher-priced units grew. Near-new SUVs posting the largest gains. The top five sellers of the month had an average price of $25,043, approximately 7% below the average listing price for all used vehicles sold.

The higher prices at used retail right now are reflective of strong wholesale values earlier in the spring, particularly for older and more affordable vehicles. Auction prices – an important source of used-vehicle inventory – ran well above year-ago levels earlier in 2026 and have held, carrying through to retail and helping explain the sustained gains.

Price-conscious buyers continue to face limited options in the used-vehicle market, with inventory in the lowest-priced segments remaining scarce. Vehicles priced under $15,000 carried 33 days’ supply in May, 12 days below the overall market average of 45.

Certified pre-owned (CPO) sales decreased 0.9% year over year in May, according to data reviewed by Cox Automotive. CPO sales in May were up 6.1% month over month. May CPO sales are estimated at 228,521, up from 215,354 in April. CPO share of total used-vehicle retail sales was 15.7% in May, up from 15.0% in April. Year-to-date, CPO sales are running approximately 3.3% below the same period last year.