According to new data from Cox Automotive, the U.S. auto market is closing 2024 on a strong note. November sales maintained a seasonally adjusted annual rate (SAAR) of 16 million vehicles, consistent with October. This marks a significant improvement over last November’s 15.5 million SAAR, signaling a continued recovery in the automotive sector.
Inventory levels are playing a critical role in this growth. New-vehicle inventory surpassed 3 million units in November, the highest since the pandemic’s onset. This increase has driven sales incentives to 7.7% of the average transaction price—the highest level in over three years—further boosting consumer affordability.
Charlie Chesbrough, Senior Economist at Cox Automotive, attributes the solid performance to rising consumer confidence, declining auto loan rates, and improved market conditions following the election.
Electric vehicles (EVs) are also expected to see a surge in sales as consumers rush to capitalize on federal tax credits that may be reduced or eliminated in 2025. With discounts and incentives at their peak, EV sales are poised to finish the year on a high note.
While supply remains robust for new vehicles, used inventory continues to tighten, with retail prices softening slightly. This mixed supply dynamic underscores the shifting environment as automakers and dealers adapt to evolving consumer demand.
November’s sales figures underscore the resilience of the auto market as it navigates changing economic and policy landscapes. With affordability improving and inventories recovering, the industry looks set for a solid finish to 2024.
