by Reduction in inventories and rising prices for new cars
Buyers of new cars are facing a double blow: prices are rising, and inventories in warehouses are shrinking. According to research data, in April, the volume of new cars in stock fell by 7.4%, reaching 2.49 million units. This is 10.5% less than a year ago and 200 thousand units less than in March.
This is a terrible combination for buyers, as inventories of new cars continue to shrink, and prices continue to rise.
Differences in inventories between brands
The average inventory of new cars is 66 days, which is 16 days less than last year. However, the situation varies significantly depending on the brand. For example, Toyota and Lexus inventories will run out in less than a month, while Land Rover, Infiniti, Mitsubishi, Ram, and Jaguar have over 100 days of inventory.
Prices also continue to rise. At the end of April, the average price of a new car was $48,656, which is $774 (1.6%) more than at the beginning of the month. Compared to last year, the price has increased by $1,318 (2.8%).
Manufacturers cite tariffs and uncertainty as reasons for suspending deliveries and production. Ford has already announced price increases, and other companies are likely to follow their example.
Although sales in April increased due to fears of further price hikes, activity slowed slightly by the end of the month. However, prices remain high, and there are no signs of a decline yet. This trend may continue, especially if manufacturers continue to face supply chain difficulties.
