According to newly released insights from Cox Automotive‘s analysis of vAuto available inventory data, new-vehicle inventory numbers are improving slightly. New-vehicle inventory was slightly higher at the end of July versus the same time last year. The total US supply of available unsold new vehicles came in at 1.09 million units at the end of July, up 2% from 2021. However, the new car supply is still drastically lower than it was during the years before the pandemic before the global computer chip shortage impacted production.
New vehicle inventory at the end of July 2020 was 2.55 million units with a day supply of 66; in 2019, there were 3.69 million with a day supply of 88.
Cox Automotive Senior Economist Charlie Chesbrough says production is not yet catching up to demand. “This marks the first time in 2022 that new-vehicle supply has been higher compared with the same week last year. But this is not due to a big jump in inventory recently, but rather an indication of how bad it was last year,” he said in a statement.
When sales were brisk toward the end of July 2021, there were 1.07 million vehicles on hand or a 29-day supply. At the end of last month, there was a 37-day supply.
Average asking prices and average transaction price (ATP) continue to rise because of supply and demand constraints and in response to record low incentives. Luxury vehicles, which are receiving priority for available computer chips, account for a larger share of new-vehicle sales, at 17.8%.
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