Car Dealerships Finally Have Inventory, Potentially Leading To "More Pricing Pressures"

On a positive note, the availability of cars and trucks at dealership lots has been steadily improving throughout the spring selling season. However, consumers have contended with the worst affordability in years as high auto loan interest rates and elevated vehicle prices have sent the average monthly payment for new cars to around $754 per month.

Data from auto industry research firm Wards Intelligence shows dealerships had 1.8 million vehicles in transit or on lots at the end of April, a 50% improvement compared with the same month last year, but still, only half when compared with stock levels two years ago, according to The Wall Street Journal.

Some brands, such as Buick, Jaguar, and Jeep, are getting heavy on vehicle stock with over 100 days worth of unsold inventory or more at the end of April, Cox Automotive shows. This is about double the industry average.

For many Americans, the highest new auto 60-month loan rate of nearly 7.5%, the highest in more than a decade, has led to the average monthly payment for new cars reaching $754 in March as the average price of a new vehicle in the same month hit $48,000.

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