Sales of new and used vehicles reached their highest levels of the year in August. New sales were up 8% and used car sales increased 4%, according to the latest auto market report from Cox Automotive.

What You Need To Know

  • New car sales increased 8% in August, according to Cox Automotive

  • Used car sales increased 4%

  • August was the best month for new and used auto sales in 2024

  • New vehicle inventory is down 16% compared with pre-pandemic levels

New vehicle sales are currently 33% above where they were last year at the same time, while used vehicle sales are up 21%.

“Despite concerns heading into the month, the retail vehicle market saw improving demand in August as rates modestly declined,” said Cox Automotive Chief Economist Jonathan Smoke. 

The average auto loan rate for a new car is currently 9.58%, falling from a peak of 10.01% in June. The average rate for a used auto loan is 13.92%, down from its peak of 14.59% in February.

The sales increase comes amid a mixed economic backdrop. The average price of a gallon of regular gas declined 0.6% last week to $3.33 per gallon — 13% less than a year ago. Jobless claims, however, are higher than pre-pandemic levels while job creation is slowing. 

Stronger demand is leading to less supply. Inventory for new vehicles is 16% lower than pre-pandemic levels. The supply of vehicles declined 7% over the most recent week to its lowest level of the year. Used vehicle supply has also tightened, dropping 4% over the past week.

“September is going to be an interesting test for demand with expectations that rates should be declining soon, but with tight supply hindering potential improvement in affordability and sales,” Smoke said.