On the Dash:
- New vehicle days supply dropped sharply in March, falling from 96 days in February to 79.
- Average transaction prices hit $49,275 in March, up 3.5% year-over-year.
- Brand-level supply ranges from 36 days at Toyota and Lexus to more than 140 days at Dodge.
New-vehicle inventory fell to an average 79-day supply in March, according to the latest data from Cox Automotive. That’s down from 96 days in February. Analysts say the tightening supply could signal potential price increases.
Supply varies widely among brands. Toyota and Lexus reported the tightest supply at 36 days each. Audi and Honda also reported supply well below the industry average in March, at 47 and 52 days, respectively.
On the other end of the spectrum, Stellantis dealers had the highest average supply. Chrysler, which is now limited to just Pacifica and Voyager minivans, reported more than double the industry’s 79-day standard. Dodge, Ram, and Jeep all exceeded 125 days. Oversupplied dealers may be more willing to offer incentives and negotiate to move those vehicles off their lots.
At the same time, the average price for a new vehicle inched up 3.5% from March of last year to $49,275, according to Kelley Blue Book data. Lower supply historically leads to higher prices, shifting negotiating power away from buyers and potentially benefiting dealers.
As overall inventory tightens, demand is expected to rise as the spring sales season progresses. That could push prices higher for dealers with low inventory. Industry analysts will be watching April closely to see whether last month’s drop in inventory sets the stage for sustained contraction or just a temporary dip in an otherwise stable market.
