Reasons Why Now is an Unfavorable Time to Purchase a New Vehicle | Carscoops

      Inventories decreased by 7.4% last month, while prices rose by 1.6%.

      It’s a challenging situation for individuals looking to purchase new cars due to increased prices and reduced inventories.

      In April, new vehicle inventories fell by 7.4%, resulting in an average supply of just 66 days.

      Both Toyota and Lexus have an inventory of new vehicles that lasts less than a month.

      If you’re searching for a new car, prepare yourself for a difficult experience. Recent research has revealed unfavorable news for buyers: prices are on the rise and inventories are dwindling. This is not the ideal situation when you plan to invest a significant amount in a new vehicle.

      This unfavorable scenario for consumers is highlighted by Cox Automotive, which reported a 7.4% drop in new vehicle inventories in April, totaling 2.49 million units. Compared to a year ago, inventories have decreased by 10.5% and are down by 200,000 units since March.

      Cox pointed out that while it is common to see an increase in sales during the typical "spring bounce," inventories are not being replenished quickly enough to match the demand for new vehicles. Factors such as tariffs and uncertainty have led some automakers to stop shipments and halt production.

      As a result of this mismatch, the average supply of new vehicles has dwindled to just 66 days, which is down 16 days from last year and six days from the previous month. However, inventory levels differ significantly among manufacturers; Toyota and Lexus are struggling with supplies amounting to less than a month, while brands like Land Rover, Infiniti, Mitsubishi, Ram, and Jaguar maintain inventories exceeding 100 days.

      Although sales surged in April due to concerns about price increases from tariffs, the pace calmed somewhat later in the month. Nevertheless, prices did not decrease.

      According to Cox, the average new vehicle listing price at the end of April was $48,656, which reflects an increase of $774 (1.6%) from the beginning of the month. This price is also up $1,318 (2.8%) compared to a year earlier, closely aligning with the average transaction price of $48,699.

      Regarding price hikes, the situation appears to be worsening. Ford indicated that tariffs were a contributing factor to their decision to raise prices on models such as the Maverick, Bronco Sport, and Mustang Mach-E, and they are unlikely to be the last automaker to make similar adjustments.