Steady supply and higher incentives have kept sales strong despite rising interest rates.
Andrea Piacquadio
New-vehicle inventories continue to rise as new vehicle sales stay steady despite economic headwinds, according to data from Cox Automotive and the Automotive News Research & Data Center.
Cox Automotive estimates U.S. new-vehicle inventory at 1,928,619 vehicles, which represents a 52-day supply. That’s up from 1,904,958 vehicles, or a 53-day supply, in April, and is 71% higher than May 2022.
Supply has increased significantly compared to 2022, but it remains much lower than historical levels. Cox estimates days’ supply based on the selling rate of the previous 30-day period.
Steady supply and higher incentives are keeping sales strong despite rising interest rates, according to Cox analysts. According to Cox, the new-vehicle market should remain strong into the second half of 2022, unless the economy experiences tighter credit or more job losses.
Midsize, compact, subcompact and high-performance cars are the only vehicle segments with less than a 40-day supply, according to Cox data. High-end luxury cars, full-size cars, electric vehicles and “uber-luxury” vehicles all report over 80-day supplies.
