The days of paying MSRP could be ending as new vehicle inventory hits a two-year high

Supply issues stemming from Covid and component shortages appear to be easing, making more cars available to US buyers

for Chris Chilton

2 hours ago

One of the factors driving the rise in the price of new cars over the past two years has been a lack of supply, as production bottlenecks limited the number of cars that could be built and vehicle inventories falling to sometimes dangerously low levels.

But auto manufacturers and dealers will be breathing a sigh of relief at the news that new vehicle inventory is at its highest point in nearly two years. Data from Cox Automotive suggests new car inventory in the U.S. is at 1,893,855 vehicles, which is equivalent to a 56-day supply and about 70 percent higher than where it was this time of year past

And that increased supply has resulted in better deals for shoppers. Cox analysts said they’ve noticed more rebates and incentives being offered, and say the two-year trend of Americans paying above MSRP is over (though not if you’re hoping to buy a Dodge Challenger SRT Demon 170).

Related: Dodge Dealers Asking $100,000 to $250,000 Off MSRP for Challenger SRT Demon 170!

But Cox’s team cautioned that while inventory levels are substantially higher than in 2022, they are still well below pre-pandemic numbers. As of March 2019, the US had a supply of 3.98 million vehicles which would be enough to see it through even 94 days.

The study reveals that, aside from low-volume, high-performance cars, the vehicles with the lowest supply were subcompact, compact and midsize cars, followed by minivans and compact and subcompact SUVs. The highest bid is held by a combination of national brands (the Stellantis companies leading the table) plus several luxury car manufacturers. But not all luxury brands are doing well. Cox says Lexus has less than a 30-day supply, and BMW and Land Rover are also out of reach for cars.

Trucks, however, these things seem to multiply like rabbits. According to Cox’s numbers, the Ram 1500 had a 102-day supply, Ford’s F-150 had about 80-90 days, and GM even idled two full-size truck plants to reduce inventory levels .

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One of the factors fueling new-car price rises over the past couple of years has been a lack of supply as production bottlenecks limited the number cars that could be built and vehicle inventories fell to sometimes dangerously low levels."
  [1]=>
  string(448) "



But automakers and dealers will be breathing a sigh of relief at the news that new-vehicle inventory is at its highest point for almost two years. Data from Cox Automotive suggests the U.S. new-car inventory stands at 1,893,855 vehicles, which is equivalent to a 56 day supply and approximately 70 percent up on where it stood at this time last year."
  [2]=>
  string(440) "



And that increase in supply has resulted in better deals for buyers. Cox’s analysts said they’d noticed more discounts and incentives being offered and claim that the two-year trend of Americans paying above MSRP has ended (though not if you’re hoping to buy a Dodge Challenger SRT Demon 170)."
  [3]=>
  string(240) "



Related: Dodge Dealers Asking From $100K To $250K Over MSRP For Challenger SRT Demon 170!"
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  string(2106) "




         
            
  
        


But Cox’s team warned that although inventory levels are substantially higher than they were in 2022, they’re still way down on pre-pandemic numbers. In March 2019 the U.S. had a supply of 3.98 million vehicles that would be sufficient to see it though 94 days."
  [5]=>
  string(535) "



The study reveals that other than low-volume, high-performance cars, the vehicles that had the lowest supply were subcompact, compact and midsize cars, followed by minivans, and compact and subcompact SUVs. The highest supply is held by a mix of domestic brands (the Stellantis companies topping the table) plus various luxury automakers. But not all luxury brands are faring well. Cox says Lexus has under 30 days supply and BMW and Land Rover aren’t flush with cars either."
  [6]=>
  string(304) "



Trucks, though – those things seem to multiply like rabbits. According to Cox’s figures the Ram 1500 had 102 days of supply, Ford’s F-150 had around 80-90 days, and GM even idled two full-size truck plants to reduce inventory levels."
  [7]=>
  string(1926) "




         
            
  
        "

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