New inventory grew by 9% causing day supply to increase to 76 days, 24 days higher than last year. This rise is partly due to more 2025 models arriving on lots, while unsold 2024 models pose a growing risk for dealers. Prices for gas units continue to rise even as consumer affordability remains a focus. However, list prices fell YoY for hybrids as the space has become more competitive, making up over 20% of new vehicle sales in October. EVs also saw prices fall slightly YoY as aging continues to cause problems for most brands.
Used vehicles saw an 9% increase in sales MoM with hybrids increasing by 12% and gas units increasing by 7% while EVs continue to struggle, falling another 1%. Pricing for gas units and hybrids as a whole remained consistent MoM and YoY while EVs saw significant increases.
These trends highlight the evolving dynamics in the automotive market. Rising inventories and steady used vehicle demand could prompt more pricing adjustments and incentives for new cars. Effective inventory management will be critical to managing aging and mitigating related risks.
New Vehicles:
- New vehicle sales increased by 7% MoM but were outpaced by a 9% increase in inventory causing day supply to continue its increasing trend. It increased by 4 days to 76 days, an increase of 22 days YoY.
- Aging saw no movement MoM but increased 12% YoY.
Used Vehicles:
- Used vehicle sales grew by 9% MoM after slowing last month.
- Day supply saw no change MoM but decreased by 3 days YoY to 41 days.
- Aged inventory increased by 2% MoM and fell by 2% YoY to 47%.
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.