While inventory is growing, vehicles are moving off lots faster than they were a year ago.
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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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Analysis: Experts from Cox Automotive say in the near term, after a short surge in buying, vehicle sales will likely fall amid price increases, and OEMs may eliminate some models if tariffs persist.
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About 44% of the new vehicles sold in the U.S. last year were imported from countries across North America, Europe, and Asia.
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Analysis: The proposed levies would add further price pressure to an auto industry already facing affordability challenges.
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Commentary: No mainstream automaker will be immune to the pain, which will almost certainly be transferred to buyers through higher prices. The U.S. auto market already has an affordability problem.
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Many buyers waiting for the best deals realize now is the time to buy a vehicle before the new Administration's possible policy changes.
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CAR 2024: An all-star panel of economists and data analysts find that used/wholesale vehicle prices and values will remain above the previous “normal” levels last seen in the late 2010s.
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Inventory levels reach the highest point since June 2020 while the number of buyers who can afford a new vehicle is the best since June 2021.
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