Cox Automotive‘s analysis of vAuto Available Inventory data shows that new vehicle inventory in September closed at the highest level since early June 2021, and average listing prices fell to the lowest point in two months.
“Supply is improving but demand is staying strong so we’re still not back to inventory levels of years past,” said Cox Automotive Senior Economist Charlie Chesbrough. “Despite elevated vehicle prices, soaring interest rates and high inflation, we see no signs that demand is falling off, at least, not yet.”
The total US supply of available unsold new vehicles stood at 1.32 million units at the end of September, an increase from 1.23 million cars at the end of August. Days’ supply was 42 compared to 41 at the end of August.
Supply at the end of September was 54% higher than at the end of the same month a year ago. While that percentage is quite an improvement, it’s still significantly lower than in previous years. The end of September 2020 had a supply of 2.46 million vehicles for a 57 days’ supply, while September 2019 had a supply of 3.45 million cars for an 80 days’ supply.
According to Kelley Blue Book, new vehicle sales in September totaled 1.12 million units, a 10% increase over the same month last year but a slight decline from August. The SAAR for September was 13.5 million, up slightly from 13.1 million in August.
The average listing price dropped to $46,294 in September, a marginal from August and the lowest level since mid-July. That listing price is a 7% increase over a year ago. According to Kelley Blue Book, average transaction prices dropped from record highs to close out September at $48,094. Incentives decreased to only 2.1% of the average transaction price in September, marking a new record low.
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