AutoPayPlus on LinkedIn: New-Vehicle Inventory Increases While Steady Sales Pull Down Days’ Supply… (2024)

Back in 2022, during the COVID-fueled new vehicle inventory shortage, automotive dealerships made a collective $55 billion in annual profits.Fast forward to 2024, and dealer profits are projected to be about $26 billion — down over 50% in two years, but still almost 50% higher than before the COVID-19 pandemic.Over the same period, dealership profit margins shrank from almost 7% down to 3.2%.https://lnkd.in/eXgtfyDH

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EGADS!! Could see this coming :) Cox Automotive Inc..... 2,837,400 in its latest estimate, a 74-day supply, up slightly fromthe previous month. A year earlier, it was 1.9 million vehicles, a 35 percent year-over-year increase.74 days is simply too high, further exacerbating dealership operating expenses due to high floor plan interest costs, along with much heavier incentives.Interesting to note that Toyota Motor Corporation and Lexus have the second lowest days supply (All OEMs do not report...Porsche AG has very low inventory), providing their dealers with a balanced inventory, higher grosses and reduced incentives. Once again Toyota leads the pack :) Is it any wonder Toyota and Lexus franchises retain the highest blue-sky valuations in the industry. Cadillac, Lincoln Motor Company, JLR, INFINITI Motor Company, Acura take note.Ford Motor Company, General Motors, Stellantis, Volkswagen Group#automotive #automotiveindustry #sales #innovation #ecommerce #branding #ai #ev #electricvehicles #technology #business #leadership #disruptor

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New car prices see slight increase in July as inventory recovers: New car prices rose only 0.4% year-over-year in July, the smallest annual increase in a decade. According to Cox Automotive, average transaction prices reached $48,334 by the end of the month, $337 more than in June and $199 more than in July 2022. Since the start of the year, new car prices have fallen 2.7%, […]The post New car prices see slight increase in July as inventory recovers appeared first on CBT News.

The #auto industry continues its year-long trend of seeing inventories drop at month-end, then surge through the first two weeks of the following month. The total advertised #dealer #inventory count is slightly down from last month's high and now stands at 1.966 million units as of the end of the week of Sept. 11 — still representing a substantial increase since the beginning of the year. Read our article to learn more: https://ow.ly/iCi350PPoUW

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Are inventory shortages making an impact on your lot? The industry will continue to fluctuate, but it’s up to you to prepare for these problems today. Follow our guide to dealing with automotive inventory shortages and put yourself on a path to success. https://buff.ly/3ZzWvDG

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Navigating Downward Pressure on Vehicle Gross ProfitsIncreasing inventory levels, rising floor plan costs and margin compression are the latest twists in what continues to be a rapidly evolving automotive retail market.http://spr.ly/6041wBbWz #Automotive #AutomotiveTechnology #IndustryNews

Exciting news! August auto sales are predicted to surge nearly 19% compared to last year, thanks to a boost in new vehicle inventory and stronger fleet sales. Supply improvements and increased demand are driving growth. However, rising interest rates and concerns about affordability may present challenges down the road.#ConnecttoClassic #FandI #AutoSales #AutomotiveIndustry #MarketInsights #CoxAutomotive

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Navigating Downward Pressure on Vehicle Gross ProfitsIncreasing inventory levels, rising floor plan costs and margin compression are the latest twists in what continues to be a rapidly evolving automotive retail market.http://spr.ly/6049wBbWJ #Automotive #AutomotiveTechnology #IndustryNews

According to a recent CDK Global study, buyers had an easier time with the vehicle purchase process in September, despite lingering inventory worries. Auto Dealer Today reports.#autosales #autodealers #CDK #consumerexperience #EaseOfPurchasingStudyhttps://lnkd.in/guSTGBzR

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Navigating Downward Pressure on Vehicle Gross ProfitsIncreasing inventory levels, rising floor plan costs and margin compression are the latest twists in what continues to be a rapidly evolving automotive retail market.http://spr.ly/6042wBbWM #Automotive #AutomotiveTechnology #IndustryNews