New-vehicle supply closed February higher than it ended January despite surprisingly strong sales, according to Cox Automotive’s analysis of vAuto Available Inventory data. The average listing price edged lower.
The total U.S. supply of available unsold new vehicles stood at 1.80 million units at the end of February, compared with an upwardly revised 1.75 million vehicles at the end of January. Supply was up 68% from a year ago, or 730,000 units higher.
Days’ supply was 56, down two from the end of January but up 21 days compared with the end of February 2022. Historically, a 60 days’ supply across the industry had been considered normal and ideal.
The Cox Automotive days’ supply is based on the daily sales rate for the most recent 30-day period that ended February 27, when about 970,000 vehicles were sold, up 5% from the same period in 2022.
For the full calendar month of February, total new-vehicle sales were up 9% from a year ago for a seasonally adjusted annual rate of sales (SAAR) of 14.9 million, up from the 13.7 million a year ago but down from January’s surprisingly strong 15.9 million. Total sales were buoyed by double-digit increases in fleet sales, as has been the case for the past few months.
“Helped by improved inventory, new-vehicle sales are showing surprising strength, considering the relentless talk of a recession, growing economic headwinds, and continued inflation, especially in the form of high vehicle prices and continually rising interest rates,” said Charlie Chesbrough, Cox Automotive senior economist.
While inventory is up substantially from 2022 levels, it remains low by historical standards. At the end of pre-pandemic February 2019, the total supply was 3.78 million vehicles for a 115 days’ supply.