Sales of used cars and certified pre-owned vehicles took a big jump in February, thanks to falling prices that have widened the price gap between new and used vehicles, according to the latest State of the Dealer Report from ZeroSum.

The report showed dealers moved 1.29 million used vehicles last month, up from 1.13 million in January and the most recorded by ZeroSum since August 2021 – and that number is projected to rise slightly higher in March.

The result of that sales surge was a dip in used inventory levels to 1.89 million units — though still far above the 1.34 million of February 2023 — and a giant leap in turn rate, from 57% in January to 71% a month later.

ZeroSum said the key factor in the used market is pricing, which was down in February for the eighth consecutive month. In all, the report said, the average list price of a used vehicle has dropped more than $3,800 from $30,000 in June to just over $26,000.

The average new-car price, meanwhile, fell below $50,000 for the first time in more than a year, but that decline has been outpaced by the used-car slide.

“The sustained pressure on pricing appears to be having an effect on movement of not only used vehicles but new vehicles as well,” ZeroSum vice president of dealer success Jeff Englishmen said in a news release. “The slower decline in new vehicle pricing is widening the gap between the two, which can cause consumers to consider their options carefully.”

The CPO segment mirrored the overall used-car market with a big sales increase, rebounding from a slow fourth quarter to reach 163,000 in February. Inventory dropped below 200,000 units for the first time in five months as turn rate soared to 86%, the highest level since the 90% rate in March 2023.

As with used cars in general, certified prices have dropped quickly — more than $3,000 in average since May — to about $37,000 in February. That’s also a faster fall than new car prices, which again increases the price difference compared to new vehicles, making CPO vehicles an appealing option to cost-conscious car buyers.

The full report is available for download here.