- The average car dealer now has a 90-day supply of cars to sell – more than they traditionally want
- Toyota, Lexus, and Honda are still undersupplied and discounting less
Supply and demand govern car prices, and supply may be higher than demand this month. New car sales typically accelerate in December. However, dealers for many brands may still have more cars than they want and be open to negotiation.
Related: Is Now the Time to Buy, Sell, or Trade-In a Car?
Car dealers measure their supply of new cars to sell in a metric called “days of inventory” — how long it would take them to sell out at today’s sales pace if they couldn’t acquire more.
Every dealer has its own inventory target based on the typical behavior of the community it serves. But an old industry guideline tells them the average dealership should keep about 60 days’ worth of new cars in stock, with another 15 days on order or in transit.
Fewer means they might not have the combination of colors and features a shopper wants. More costs them money — dealers are typically making payments on the cars on their lot through a complex financial instrument called a floorplan loan. The longer a car sits unsold, the more it costs the seller.
The average dealer enters December with a 90-day supply this year, according to data from Kelley Blue Book parent Cox Automotive. That’s down one day from last December, but still over target.
Toyota, Lexus, Honda Undersupplied; Lincoln, Chrysler, Jeep Far Over
- Brand-by-brand, inventory levels today vary from 44 days to 161
The industry average supply remains higher than historical norms, but that’s not true of every brand.
At the low end, Lexus dealers have just a 44-day supply, with Toyota right behind at 45. That’s not unusual — Toyota’s brands tend to run lean inventory. This is actually a relief to their dealers. Both brands fell below 30 at one point in 2025.
Related: Average New Car Price Flirts with $50,000
It does, however, mean buyers have less negotiating leverage with those companies.
At the other end of the scale, Chrysler dealers have a 152-day supply, and Lincoln dealers have a stunning 161. They may be more open to negotiations.
Vehicles priced between $40,000 and $50,000 are plentiful, with an average of nearly 100 days in stock. At both extremes, they sell faster. Vehicles priced under $40,000 and over $80,000 are both selling quicker than mid-priced models.
“As the year ends, automakers are likely to offer more aggressive incentives on remaining 2025 models, especially in the hyper-competitive $40,000 to $50,000 range,” says Cox Automotive Executive Analyst Erin Keating.
