Automakers faced a world of trouble in regard to building vehicles following the onset of the pandemic in early 2020, which was caused by supply chain issues, production shutdowns, and labor shortages, among other reasons. With demand remaining high, those inventory shortages continued for years – until early 2024, at least, when the supply/demand curve really started to even out. As a result, some automakers are now staring at rather large amounts of stock on dealer lots, and that includes Ford inventory levels, which continued to rank among the highest in the industry in October 2024.
According to new data from Cox Automotive, new Ford inventory levels closed out last month at a 119 days’ supply, which is well above the industry average of 85 days’, and the sixth highest level of any brand behind only Lincoln, Volvo, Ram, Dodge, and Mini. However, this is nothing new for The Blue Oval, which stood at a 105 days’ supply in August and a 112 days’ supply in September – prompting concerns from CFO and vice chair John Lawler.
While some brands continue to manage their inventory levels better than others, the total U.S. supply of available unsold new vehicles in October reached over three million units for the first time since the onset of the pandemic – a 29 percent increase, year over year. Days’ supply of inventory increased to 85 days, which is 14 percent higher than October 2024, too. Regardless, with demand ramping up, the impact of these high inventory levels on new vehicle pricing remains largely unchanged.
In fact, the average list price for new vehicles in October was $48,117, which is 0.7 percent higher than September and 1.8 percent more than a year ago. This overall average has remained above $47,000 for over two years now, signaling a trend that could perpetuate through 2025, too. Average transaction pricing wasn’t much better at $48,398, 1.7 percent higher than October 2023, but it’s clear that shoppers are eyeing lower-price models. In fact, vehicles priced between $50,000 and $80,000 had a days’ supply of inventory over 100 days’.
Comments
Inventory well above and incentives well below (except for EVs). Great situation.
What are you thankful for, I’m thankful that I’ve worked for Ford Motor Company, for 50 years.
Count your blessings, see what God hath done.
Sounds like with all this inventory, we need to offer up some really fantastic deals.
“…the impact of these high inventory levels on new vehicle pricing remains largely unchanged….” The numbers don’t add up. We have bloated (and rising) inventory as we near the end of the year with Model Year ’25 vehicles arriving shortly and there is little to no effort from manufacturers to clear out all this excess capacity? Something smells bad. This really looks like collusion among manufacturers to toe the line on high pricing. Everything about this inventory situation screams the need for a “SALE!” I hope the new-and-improved DoJ looks into this.
We’re looking at replacing one of our older, higher mileage vehicles. If prices were reasonable, I’d start the process of buying a 2025 Ford Explorer right now. But, they’re not. So, we’ll likely just hang on to our older vehicle longer, and will likely also consider the competition when we do have to replace it. Been a Ford-only guy for as long as I could drive, but they’re making it tough to stay loyal.
Time to bring back 20k off truck month!