CARY, N.C. -

Used-vehicle sales this month are on track to beat year-ago figures by 4% and top July’s numbers by 2%, according to a forecast released Tuesday by ALG.

Specifically, the analytics division of TrueCar is calling for 3.6 million used-vehicle sales for August.

ALG chief industry analyst Eric Lyman said the year-over-year gain in used-car sales comes “as consumers turn toward the used-car market for cost savings during these uncertain economic times, and also due to some supply shortages on the new-vehicle side.”

Lyman adds in the news release, “While this heightened demand is creating upward pressure on used retail prices, it is making it a great time for consumers to get top value on a trade-in on popular used vehicles.”

Recent analyses have echoed the latter sentiment.

Dealers were paying an average of $14,066 on trade-ins during July, which was up 16.4% from the $12,083 average trade-in value in June, according to a report from Edmunds.

This movement reflects what Edmunds executive director of insights Jessica Caldwell called a “dramatic recovery” in pre-owned — one that has led to dealers paying more to replenish the used supply moving quickly off their lots.

“The used market is experiencing a dramatic recovery: Used vehicles were sitting almost untouched at the start of the pandemic, and now they’re practically flying off dealer lots,” Caldwell said in a news release.

“Dealers are willing to pay more to acquire inventory to meet the surge in demand for used cars, which is great news for car owners because it means they can expect to get a higher value for their vehicle if they sell or trade right now,” Caldwell said. “But time is of the essence because there’s no guarantee that these unique market conditions will continue for long.”

While prices and sales are high, used inventory levels are low.

A Cox Automotive Data Point report from Thursday shows that last week began with 2.16 million unsold used vehicles, down from 2.67 million from a year ago and marketing the “lowest level in years.”

Cox Automotive estimates that nationally, there is 33 days’ supply of unsold used vehicles, as of that report.  A year ago, it was closer to the norm at 43 days.

The company said used supply levels are “stabilizing,” however, compared to declining new-car supply and that days’ supply has stayed in the 32-35 range the last two months.

Still, used-car inventory remains short amid strong retail demand and disruptions to supply channels, according to the Cox Automotive report.

“Used-vehicle demand has been strong since March’s massive COVID-19 market shock,” Cox Automotive senior economist Charlie Chesbrough said in the Data Point report. “The paycheck protection stimulus program seems to have provided many used car shoppers the ability to purchase.”