February opened with 80 days of new-vehicle supply across the industry, the highest since June 2020, according to Cox Automotive’s analysis of vAuto Available Inventory data.
As dealers ramp up incentives to entice buyers, the national inventory levels have also seen a significant uptick in February, reaching an 80-day supply on average across the industry—a figure not seen since June 2020.
The average new-vehicle listing price opened February at $47,142, down 1% from a year ago. The average listing price rose throughout December 2023 and started January high, but prices began declining in the second week of January and have been dropping by almost 1% a week.The U.S.new-vehicle average transaction price in January was $47,401, down nearly 4% from a year ago and down almost 3% from December 2023, according to Kelley Blue Book. (The month of December, when luxury vehicle sales typically surge, often sees a jump in average transaction prices.) Discounts and incentives in January averaged 5.7% of ATP, up from 5.5% in December and nearly 100% higher than a year ago.
Domestic automakers like Dodge, Chrysler, Lincoln, and Ram are leading the pack with the highest inventory levels, while Asian imports such as Toyota, Honda, Lexus, and Mazda are at the lower end of the spectrum. The new Toyota Grand Highlander and the Ford Maverick are among the models with the lowest inventory.
In contrast, pickup trucks and SUVs, particularly the Ram 1500 and Ford Bronco Sport, are experiencing high inventory levels. This abundance has led to a decrease in the average new-vehicle listing price.
New car affordability is up in January with tighter credit. Market shows signs of normalcy, prices drop, good deals for consumers as inflation eases.
The automotive market is undergoing a transformation, with increased inventory leading to more competitive pricing and a shift in production strategies. As the industry adapts to these changes, consumers stand to benefit from a market that is gradually aligning with their interests.
Related posts:
New-Vehicle Inventory Hits 80 Days of Supply – Cox Automotive Inc. (coxautoinc.com)
New Vehicle Supply Spikes, Affordability Surges
Vehicle Prices Begin Downward Trend in the U.S., Despite Inflationary Pressure (carfinderzone.com)
