New Vehicle Inventory Hits 2-Year High as Demand Lessens

Cox Automotive reported that the May U.S. new vehicle inventory ended at a two-year high of 1.96 million, up 73% year-over-year, as consumer demand dipped.  Days’ supply ticked up to 55, 46% higher than it was in May 2022. Cox Senior Economist Charlie Chesbrough said, “The month of May ended on a slightly less positive note than when it started, suggesting some weakening of demand.  Sales for new vehicles began to decline near the end of the month, after rising throughout the month as supply continued to increase.”

By historical standards, inventory remains low.  In May 2020, it stood at 2.99 million and 92 days’ supply.  May’s new-vehicle sales grew 23% year-over-year driven by strong fleet sales, and the seasonally