As dealerships get ready for a big Memorial Day Weekend, they have plenty of cars on the lot to sell.
According to Cox Automotive, brands with 100+ average days’ supply pulled the average days’ supply up two days at the start of May to 76 days
An analysis of vAuto Live Market View data by Cox found the at the start of May, the top end of the trending days’ supply jumped collectively, with Stellantis brands Jeep and Ram weighing on the average. Days’ supply at Jeep increased by 21%, while Ram jumped up by 14%. Both brands have days’ supply at more than twice the industry average.
100 Days on the Lot
MINI and Mitsubishi both joined the 100+ club at the start of May, with MINI new-vehicle inventory jumping to 108 days’ supply, a 56% increase month over month, and Mitsubishi climbed to 115 days’ supply, representing a 26% increase month over month.
Those increases were offset by a continuing trend of tight supply at Toyota, Lexus and Honda, as well as outliers such as Porsche, where inventory tightened by 10 days from last month, landing at 64 days’ supply at the beginning of May.
The total U.S. supply of available unsold new vehicles opened May at 2.8 million units, 51 precent from the same time last year. It was up from a revised 2.7 million at the start of April when days’ supply was 74.
Five Years Earlier
For a historical comparison to five years ago, new-vehicle inventory volume at the start of May is down 26 percent and days’ supply is tighter by 19 percent, according to Cox officials.
The Cox Automotive days’ supply is based on the daily sales rate for the most recent 30-day period, which ended May 2. Sales during that period ran 5% ahead of a year ago.
The average transaction price (ATP) of a new vehicle in the U.S. last month was $48,510, up 2.2% from last month, the highest price since December 2023, according to Kelley Blue Book.
High-Priced Inventory
Discounts and incentives in April dipped to 6.3% of ATP, the first decrease since October 2023, when incentive levels ticked lower to 4.7% from 4.8% in September. The seasonally adjusted annual rate (SAAR) of sales in April was 15.5 million, keeping 2024 generally on track to be the best new-vehicle sales year since 2019.
The average listing price for a new vehicle at the start of May was $47,433, lower by $94 compared to one year ago. Listing prices remained relatively flat through the month of April. When looking at inventory by price level, Cox officials noted they continue to see more affordable units showing less supply.
The highest-priced inventory, at $50,000+, has increased to an average of 90 days’ supply, representing a 5.5% increase month over month.
