New vehicle inventory was stable month-over-month in early April due to a sizeable increase in demand but remained far ahead of prior-year levels thanks to the recovery of OEM production.
Cox Automotive recorded a total early-April new vehicle supply of 2.77 million units, roughly 1% ahead of March’s volume but 46% greater than last year’s 1.9 million. However, while inventory grew, the average days’ supply shrank compared to the previous month, driven by a higher daily sales rate. Days’ supply dropped from 79 days in March, one of the highest levels recorded in the years since the COVID-19 pandemic, to 72 days.
New vehicle prices were ahead of last year’s average but only by a narrow margin, rising less than 1%. On a monthly basis, prices have trended downward at a near-glacial pace, with April’s initial average listing equaling $47,240, down just $4 from early February. Regardless, sales picked up as overall affordability improved. Consumers also leveraged further driving demand.
As has been the norm, Toyota saw some of the lowest inventory levels in the industry at the start of April, partly due to the sustained effects pandemic-era supply chain disruptions have had on Asian automakers and to the high demand for the brand’s products. However, Ford and GMC saw above-average days’ supply, as did Stellantis, whose Dodge, Ram, and Fiat subsidies carried double the industry average.
