New-Vehicle Inventory Hits Two-Year High in May, Average Listing Price Dips
New-vehicle inventory in May reached its highest level in two years, according to Cox Automotive’s analysis of vAuto Available Inventory data, with a notable increase from the previous month. Days of supply increased due to a slight weakening in sales toward month-end. Despite a decline in the average listing price, it remained above $47,000.
The total U.S. supply of available unsold new vehicles stood at 1.96 million units at the end of May, up from a revised 1.90 million at the end of April. Inventory numbers include vehicles available on dealer lots and some in transit. The close of May marked the highest level of supply since mid-April 2021. Supply was up 73% from a year ago, or 825,000 units higher.
Days of supply edged up to 55 at the end of May from an upwardly revised 54 at the end of April. That was 46% higher than the same time a year ago. Historically, 60 days’ supply across the industry was 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 May 29, when 1.06 million vehicles were sold, up 11% from the same period in the previous year.
“The month of May ended on a slightly less positive note than when it started, suggesting some weakening of demand,” said Charlie Chesbrough, Cox Automotive senior economist. “Sales for new vehicles began to decline near the end of the month, after rising throughout the month as supply continued to increase. That caused days of supply, which is based on active supply and the daily sales rate, to edge higher. Meantime, prices for new vehicles slipped, another indication of slightly weaker demand.”