March days’ supply of auto inventory ranked by auto brand.
Because the automotive industry navigates the results of recent tariffs, the availability of recent vehicles on dealer lots across the U.S. has fallen, based on the Cox Automotive evaluation of vAuto Live Market View data released on April 10.
Recent-vehicle inventory levels in the beginning of April decreased from March and were lower than in early April 2024. Recent vehicle sales surged in March, driven by strong seasonal trends and the urgency created by the import tariff announcement.
As April opened, the entire supply of recent vehicles on dealer lots across the U.S. was at 2.69 million units, down 10.2% from the two.99 million units in the beginning of March and down 2.4% from a 12 months ago.
Recent vehicle sales increased monthly and yearly in March. The 30-day weekly sales pace in the ultimate measure of March was up 17.2% in comparison with late February and up 11.9% in comparison with the identical period last 12 months.
Retail vehicle sales have shown strong seasonal trends to date this 12 months. The brand new retail sales pace increased almost every week in February and March, with a robust surge at month-end with the import tariff announcement creating urgency in the ultimate five days of the month.
The Cox Automotive days’ supply is predicated on the estimated day by day retail sales rate for probably the most recent 30-day period. The brand new vehicle days’ supply was 70 in the beginning of April, down 21 days from the upwardly revised 91 days in the beginning of March. To begin April, days’ supply was down 10 days in comparison with last 12 months, returning inventory to levels last seen in 2023.
Recent-vehicle inventory had been relatively stable until the tip of March when the sales surge reduced inventory and days’ supply tightened much more. Among the many mainstream automakers tracked, 10 have seen their days’ supply decrease by 30 days or more month over month, with Lincoln dropping probably the most with a 54-day decrease. With import tariffs now in place and parts tariffs prone to start in May, Cox expects supply to tighten much more within the weeks ahead.
Recent-Vehicle Pricing Declines in March
The common recent vehicle listing price was $47,962, down 0.6% from the revised $48,272 in the beginning of March but higher by 1.9% from a 12 months earlier. At first of April, among the many five top-selling automakers, Ford’s average listing price experienced the most important drop of $599, followed by Hyundai with a decrease of $380, and Chevrolet, which was only $57 lower than the previous month. The common listing prices for Honda and Toyota rose in early April, increasing by $212 and $187, respectively.
As reported earlier, a brand new vehicle’s average transaction price (ATP) was $47,462 in March, down 0.2% monthly and up 0.3% 12 months over 12 months. In March, new-vehicle sales incentives were 7%, or $3,339, virtually flat month over month.
What to Expect in April and Beyond
Tariffs will spike the prices of imported recent vehicles. As pre-tariff inventory is depleted, automakers distribute these additional costs across their entire portfolio of vehicles. Tariffs led to a surge in March sales, reducing inventory levels, especially for manufacturers with already low stock levels.
On account of these tariffs and the tightening inventory, and with no policy change in Washington, consumers should anticipate higher prices and fewer discounts on recent vehicles by summer. Over time, vehicle buyers can expect a decline in production and sales, resulting in increased prices for brand new and used cars. Moreover, some models could also be discontinued as automakers adjust their strategies to address the newest economic landscape.
Starting in Q2, the tighter supply and better prices will likely mirror the conditions in 2021, when the chip shortage affected global vehicle production. Tariffs will drive higher prices, lower production and provide, and slower vehicle sales, making a difficult environment for consumers and automakers.
This Article First Appeared At www.automotive-fleet.com
