Days’ supply climbed to 49, the highest since May 2021. The question now is: Will demand keep up with supply?
Higher rates are already shifting access to vehicles and financing towards wealthier consumers as overall affordability declines.
Despite elevated vehicle prices, soaring interest rates and high inflation, there are no signs that demand is falling off yet.
September marks a record 16th straight month that new-vehicle ATPs were higher than the average manufacturer’s suggested retail price (MSRP).
But don't get too excited. Days supply is still far below historical levels and production has yet to catch up to demand.
The average price paid for a new vehicle in America now tops $48,000. Supply of popular segments – like subcompacts, hybrids and EVs – remain low.
Sales into commercial fleets were up 37% and sales into government fleets were up 28% last month compared to August 2021.
The average price for a new electric vehicle – over $66,000, according to Kelley Blue Book estimates – remains well above the industry average and more aligned with luxury prices versus mainstream prices.
While prices and supply stabilize somewhat, the overall supply is far below historical levels, said Charlie Chesbrough, Cox Automotive senior economist.
According to data from Kelley Blue Book, the average transaction price (ATP) for a new vehicle surpassed the $48,000 mark in June, the highest ATP on record.
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