The market showed stabilization in new car pricing but could see more aggressive discounting strategies to manage inventory levels. Aging concerns YoY were still very much present as aged inventory increased by 11% and day supply increased by 25 days YoY. While some recalls and supply chain issues affected specific model sales, the overall market still experienced growth MoM. Meanwhile, the used car market continued to face inventory shortages, reflected by a lower day supply of just 36 days, alongside a rise in demand. With high demand and limited supply, the used car market is expected to remain competitive, keeping prices elevated.
New Vehicles:
- New vehicles saw improvements to sales volume, day supply, and aging MoM. Aging concerns were still very much present as aged inventory increased by 11% and day supply increased by 25 days YoY.
- Pricing strategies held steady with no changes to price or markdowns.
Used Vehicles:
- Used vehicles remained very competitive with sales volumes increasing by 4% as day supply tightened by another 2 days and aged inventory continued to dwindle. Recommended action steps for upcoming months:
- Dealers will need to manage economic pressures, rising inventories, and shifting market dynamics while adapting to a more digital, consumer-centric business environment.
Proactive inventory management, competitive pricing strategies, and a focus on customer engagement will be critical to navigating these challenges effectively.