It wasn’t too terribly long ago that new car inventory hovered near or at record lows, a trend that perpetuated for years due to production shutdowns and supply chain constraints stemming from the COVID-19 pandemic, coupled with high demand. However, things have changed dramatically as of late, and new car inventory has soared to new highs, leaving dealer lots overflowing with a variety of models – many treated to a variety of incentives as well.
In fact, new car inventory across the U.S. grew by a whopping 57 percent in the first half of 2024 compared to the first six months of 2023, according to new data from S&P Global Mobility – reaching 2.84 million units. That number is also 1.8 percent higher than the end of May, and marks the 13th consecutive month of increases in new car inventory in the U.S.
In terms of individual segments, compact crossover inventory has risen the most over that time period, and currently accounts for the most advertised vehicles on the market as well. At the same time, prices haven’t cooled, with the average MSRP actually increasing by two percent since March. However, incentives are on the rise, averaging $3,236 at the end of June, the highest level since January 2022.
Ford inventory levels are certainly no exception to this rule, as they’ve remained among the highest in the industry for months now. In fact, The Blue Oval closed out May with a 101 days’ supply of new vehicle inventory compared to an industry average of 74 days’, and it has remained higher than a 90 days’ supply through the entire duration of the 2024 calendar year thus far – prompting Ford CFO John Lawler to admit that he’s concerned about this particular trend recently.
We’ll have more on the state of new vehicle inventory levels soon, so be sure and subscribe to Ford Authority for comprehensive Ford news coverage.
Comments
The reason inventory levels keep rising is no one wants to pay the greedy astronomical MSRPs
This is a chronic problem that automakers can’t seem to resist – they get paid when they sell cars to dealers, not when consumers buy them. Only Toyota and Honda seem to be able to manage this balance.
Ford will always have higher than average inventory because the wide variety of F-Series configurations requires a lot of trucks on the lot, but they need to stick to the inventory discipline they pledged after the pandemic.
Correct. Also EVs that are not selling and Ford’s now legendary poor quality.
Inventory discipline? That means higher prices for customers. Farley has not made a right decision in 5 years.
Its their own arrogant fault. I can remember about 2 years ago Farley said no more incentives, fixed pricing and then raised prices. I guess he was dreaming and wrong again. He is acting like a communist.
Farley needs to go. Plain and simple
The lots are full and yet there are still some dealers with market price adjustments on what they perceive as a hot model. When you see this, laugh at the salesman and go somewhere else. No longer any reason to even pay MSRP, at this point.
I see Mr Farley’s face on the net to much & he says to much. He should go back to his office & do some work.