
While inventory is up substantially compared to 2021 and 2022 levels, it remains low by historical standards.
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Days' 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.
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While inventory is up from 2022 levels, it remains low by historical standards. Meanwhile, the estimated typical monthly payment for a new vehicle declined to $754 from the peak of $791 in Dec. 2022.
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Days’ supply by end of November was 77% higher than at the same time a year ago and the highest since March 2021. While inventory is up from recent levels, it remains low by historical standards.
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Days’ supply in October was 26% above year-ago levels. Used-vehicle inventory has been holding at about this level since mid-January.
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Days’ supply climbed to 49, the highest since May 2021. The question now is: Will demand keep up with supply?
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Higher interest rates are likely hurting used-vehicle demand because consumers can’t afford the higher monthly payments.
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Wholesale prices had been moving downward for most of the year and decreased 4% in August from July, widening the divergence with retail prices.
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As gas prices surged to record levels, inventory of imports, especially smaller, fuel-efficient models, including hybrids, was among the lowest in the industry at the end of May.
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The average listing price as May closed dipped to $28,312, compared with a revised $28,372 at the end of April.
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