Used Prices Cross $30k, and New Demand Tops 2025 Levels for the First Time This Year

Two trends stand out this month.
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Used average listing prices crossed $30k for the first time since August 2023. And new retail demand turned positive year-over-year (YoY) for the first time all year.
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While affordability pressure continues to weigh on the new side, May finally showed some demand coming back. Prices kept climbing on both sides of the lot, yet buyer appetite held.

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Used Prices Top $30k as Demand Picks Back Up

Average used listing prices topped $30k in May, a first since August 2023, running 5.1% higher YoY. Inventory mix is playing a role, with the $30k+ tiers gaining share.
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Demand came with rising prices. Used demand turned higher in May, up 4.1% from April and 3.2% YoY, led by both franchise and independent dealers. The newest vehicles led the gain, with 1-and-under share up to 12.8% from 10.4%, while older units (8+) still made up about a third of demand.
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Used inventory kept rebuilding off its March low, with both franchise and independent lots adding vehicles and tilting the mix slightly younger. Days on market rose in May, with independent dealers driving the month-over-month (MoM) increase, though inventory still skews fresh.

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New Prices at a Multi-Year High, and Demand Turns Positive

Average new listing prices hit their highest level since September 2023, up 1.7% YoY to $50.7k. The mix keeps drifting premium, with the $30k-$40k tier seeing the largest YoY decline.
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The bigger shift was on the demand side. New retail demand moved above 2025 levels for the first time this year, up 5.7% YoY and about 6.2% from April. That's an encouraging signal after the run of YoY declines we'd been flagging.
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New inventory pulled back MoM yet stayed high versus recent years, running about 4.6% above year-ago levels, with Stellantis the fastest-growing OEM. Time on lot rose even as inventory came down, though new days on market still ran nearly 4% below year-ago levels, with Stellantis and Ford doing the most to pull that YoY level down.