Latest movement in weekly used-vehicle sales

File photo of Cox Automotive chief economist Jonathan Smoke speaking at the Auto Intel Summit. Photo by Jonathan Fredin.
After two weeks of improving numbers, the decline in used-vehicle sales at franchised dealerships compared to pre-virus projections got a bit steeper last week, according to J.D. Power.
But in total, used-car retail numbers in total are getting better when compared to year-ago figures, according to Cox Automotive.
Here’s a look into those respective data sets.
In a webinar Wednesday afternoon, J.D. Power shared data indicating that franchised dealers saw a 45% decline in used retail sales (compared to pre-virus expectations) last week.
During the week ending April 19, the decline was 42%, improving on the 54% and 61% declines in the two preceding weeks, respectively. Jonathan Banks is vice president of vehicle valuations & analytics at J.D Power Valuation Services.
“What we saw for used is not as dramatic of a recovery as new," Banks said, noting the steeper decline than the week before. "So used retail demand at franchised dealers is lagging a bit behind new-vehicle sales.”
The decline in new-vehicle sales from pre-pandemic forecast was 39% last week, making it four straight weeks of improving numbers. For the week ending April 19, the new-car decline was 44%, following drop-offs of 50% (week of April 12), 55% (April 5) and 59% (March 29), according to J.D. Power.
Over at Cox Automotive, chief economist Jonathan Smoke released his weekly update video on Wednesday.
Smoke indicated that used-vehicle retail sales bottomed out at the beginning of April and have shown gains since then. Last week, used-vehicle sales were down 35% from prior-year figures.
(The Cox Automotive numbers include franchised and independent used-vehicle retail sales, but not private-party sales.)
“That’s a significant improvement,” Smoke said of last week’s numbers.
It’s still a big drop, but consider that April began with year-over-year declines above 60%, according to the Cox data.
Smoke wrapped up his video with this message: “In conclusion, the market remains down. But we’re definitely seeing improvement in both new- and used-vehicle sales. We’re not out of the woods yet with COVID-19, and the key concerns in the coming weeks are going to be following the income disruption and unemployment that’s left in the wake of the crisis.”