Is the Worst of New-Auto Inventory Shortage Behind Us?

Is the Worst of New-Auto Inventory Shortage Behind Us?

If you’re a dealer who had a once-in-a-lifetime opportunity to reseal, resurface or restripe your new-vehicle sales lot with the least amount of hassle, you might be out of luck, according to an Automotive News report.

New-vehicle inventories are starting to build again — and relatively quickly — thanks to a combination of low incentives and higher interest rates that have kept millions of potential buyers on the sidelines. While assembly plants still face supply chain challenges, there are signs of recovery. For instance, North American production rose 12% in 2022 to 14.7 million vehicles.

U.S. vehicle inventory rose sharply in December, topping 1.8 million for the first time since May 2021, according to data compiled by Cox Automotive and the Automotive News Research & Data Center, and it was up nearly two-thirds from where it stood a year earlier.

Not all brands or segments are building at the same rate, and overall consumer demand remains strong, auto executives say. Still, on a macro level, once-empty dealership lots are starting to fill again.

Read the full Automotive News report.