New Vehicle Inventories, Sales Stay Steady
Economic headwinds are not deterring sales, Cox Automotive analysts find.
Steady supply and higher incentives have kept sales strong despite rising interest rates.
Andrea Piacquadio
New-vehicle inventories continue to rise as new vehicle sales stay steady despite economic headwinds, according to data from Cox Automotive and the Automotive News Research & Data Center.
Cox Automotive estimates U.S. new-vehicle inventory at 1,928,619 vehicles, which represents a 52-day supply. That’s up from 1,904,958 vehicles, or a 53-day supply, in April, and is 71% higher than May 2022.
Supply has increased significantly compared to 2022, but it remains much lower than historical levels. Cox estimates days’ supply based on the selling rate of the previous 30-day period.
Steady supply and higher incentives are keeping sales strong despite rising interest rates, according to Cox analysts. According to Cox, the new-vehicle market should remain strong into the second half of 2022, unless the economy experiences tighter credit or more job losses.
Midsize, compact, subcompact and high-performance cars are the only vehicle segments with less than a 40-day supply, according to Cox data. High-end luxury cars, full-size cars, electric vehicles and “uber-luxury” vehicles all report over 80-day supplies.
Originally posted on Auto Dealer Today
More F&I
Four-Figure Loan Payments on the Rise
A LendingTree analysis found that location, age and credit score play a role in the rising amount of auto loan borrowers who make monthly payments of $1,000 or more.
Read More →
APCO Holdings Acquires Fidelity Dealer Services
The finance-and-insurance product provider says the addition strengthens EasyCare’s reach across key markets.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
Ensure Your Clients Are Sure About Reinsurance
Industry experts recently broke down the complicated profit center at Agent Summit. Learn what’s relevant and what’s new to share with your dealers.
Read More →
Car Loans More Plentiful
May access opens up, as risk segments figured largely in the increased availability, Cox Automotive reported.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →
New-Vehicle Financing Hits Record
Consumers are seeking ways to make financing new-vehicle purchases manageable, from extended loan terms to smaller down payments, according to Edmunds.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →