As the effects of the “spring bounce” and initial pull ahead from tariffs diminished, sales decreased in April.
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As April opened, the total supply of new vehicles on dealer lots across the U.S. was down 10%+ and counting with days' supply down to 10.
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Commentary/Analysis: Look for likely higher prices across the broader economy, with the auto market heading into uncharted territory — a rough road indeed.
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Uncertainties in policy changes are creating challenges for automakers as they await further information.
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The market moves reflect an ideal blend of improved consumer sentiment, bigger discounts, and evident optimism in the market.
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Trends indicate that used-vehicle inventory is tighter despite the monthly rise in vehicles listed.
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As the number of new vehicles increases and incentives rise, the auto industry is seeing the highest days’ supply in two years.
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Retail used-vehicle prices have been consistently lower through the first seven months of 2024 compared to year-ago levels.
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The total U.S. supply of available unsold new vehicles opened May at 51% above a year ago, but volume is still down 26% from 2019 levels.
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Used-vehicle sales in the period were up more than 5% year over year, in line with spring fever and the tax refund season.
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