Since the onset of the pandemic in early 2020 and resulting production shutdowns and various supply chain shortages, new vehicle inventory levels have hovered at or near record lows, month-after-month. In fact, Ford ended the third quarter of 2022 with just a 19 days’ supply of new vehicles, though that improved significantly by the end of the year – to just over 70 days’ supply, in fact – a good sign for consumers looking to purchase a new vehicle. However, The Blue Oval wasn’t alone in that regard, as new Lincoln inventory followed suit, closing out December at over 90 days’ supply, according to new data from Cox Automotive.
That figure is good enough that new Lincoln inventory levels are among the highest in the industry, trailing only Buick, Jeep, Volvo, Ram, Jaguar, Infiniti, and Dodge. In total, there were 1.80 million units of unsold new vehicle inventory sitting on dealer lots at the conclusion of the year, an improvement from 1.62 million in November. Year-over-year, supply grew by 715,000 vehicles, as well as 500,000 since this past September, while overall days’ supply jumped by a substantial 65 percent.
Regardless of this improvement, inventory levels remain low compared to the 2.87 million vehicles – good for a 68 days’ supply – available in December 2020, as well as November 2019, when supply hit 3.50 million vehicles for an 82 days’ supply. New light-vehicle sales rose five percent year-over-year and 12 percent month-over-month to 934,189 units, though as Ford Authority recently reported, average transaction prices once again reached a new record high in December. Regardless, all signs point to incentives possibly making a comeback in the near future.
“New-vehicle inventory climbed through December, nearing what used to be considered ‘normal’ levels in the pre-pandemic era,” said Charlie Chesbrough, Cox Automotive senior economist. “Days of supply at the end of December increased due to production and supply improvements. But sales barely budged. While new-vehicle supply rose 37 percent since September and is 66 percent above a year ago, the sales pace at the end of December had improved by a scant 2 percent. If this trend continues – and it seems likely to do so – automakers will be under heavy pressure to move the metal with higher incentives. This will be the story to watch for in the first part of 2023 – automakers returning to discounting.”
We’ll have more on Ford and Lincoln inventory levels soon, so be sure and subscribe to Ford Authority for more Lincoln news and 24/7 Ford news coverage.
Comments
It’s time for my lease on the 3rd MKZ to expire and you have no cars to purchase anymore, so I’ve got to look at another manufacturer to replace it. How many other customers have you driven away? It really doesn’t make sense to me to drop a line that sold so well for you.
Lincoln guality has gone downhill. FOMOCO needs to address quality controls or it will be out of business in 10 years.
This must Crossover/SUV fatigue, there is demand for sedans, however, FoMoCo does not know how to make a profit on them, Ford’s Defunct Museum has a red-carpet welcome for Lincoln in 2030.
Agreed – The Aviator and other Xovers look like station wagons. Remember when mini-van were all the rage? My Black MKZ still gets complements – many of the accolades came from Teens – youngsters… awd, twin turbo – 400/400 hp/ft lb. The care is 6 years old now. It’s almost time for me to get another awd car. I don’t want a mustang, mini van, or a station wagon.