Key numbers
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New-vehicle inventory reached 2.97 million units on Oct. 31, up 4.2% from September but still 5.7% below year-ago levels.
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Industrywide days’ supply rose to 88, increasing each month since August.
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30-day sales pace improved slightly; overall October sales were up 1.2% month over month but down 2% versus October 2024.
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Average new-vehicle listing price: $49,143, down 0.4% month over month, up 2.2% year over year.
What’s driving the inventory build
Supply is normalizing post-pandemic while demand remains uneven across segments and brands. Rising days’ supply indicates vehicles are arriving on lots faster than they are selling, even as sales tick up modestly.
Segment trends
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Strength: Larger SUVs, full-size pickups, and performance models.
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Softness: Minivans and EVs (after a September surge, EV sales dropped sharply in October).
Brand highlights
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Jeep: Days’ supply up 24% month over month; inventory up 13%, driven by Cherokee, Compass, Wrangler. Also saw one of the largest 30-day sales declines.
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Cadillac: Days’ supply up 15% month over month; watch for potential mismatch if sales soften.
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Porsche: Inventory up 12%; sales slowed amid luxury and EV volatility.
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Mazda, Mercedes-Benz: Stock accumulating as sales momentum cooled.
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Sales declines: Jeep, Volkswagen, and Porsche posted the largest recent 30-day pullbacks.
Pricing and affordability
Prices eased slightly month over month but remain higher than a year ago. The report suggested affordability concerns may steer more buyers toward smaller SUVs and crossovers through year-end. Retailers may need to use incentives strategically to maintain showroom traffic without eroding margins.
Implications for automakers and dealers
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Inventory management: Align production and allocations with current demand; pace deliveries to avoid excess days’ supply.
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Mix and merchandising: Spotlight trims in high-demand segments (larger SUVs, full-size pickups, performance) and recalibrate EV expectations after October’s pullback.
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Pricing strategy: Deploy targeted incentives and sharper pricing where segments are slowing to keep inventory turning.
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Local focus: Monitor days’ supply and turn rates by market; stores heavy in slowing categories may need more aggressive promotions.
Outlook into the holidays
Year-end promotions typically lift traffic, but the gap between supply and sales bears watching. If demand strengthens, days’ supply could stabilize; if uneven demand persists—especially for EVs and minivans—brands with the fastest inventory builds may need quicker adjustments.
