- Car prices are high this season, but there’s one bright spot — supply is improving.
There’s not much good news for car shoppers these days, but we have one positive thing to tell you — car dealers are starting to build higher inventory levels heading into fall.
That could provide some pressure to counteract rising prices as the colder months set in.
The final sale price of the average new car approached its all-time high last month. The average buyer paid $50,562. It’s likely to keep rising into winter. In recent years, prices have peaked in December.
Related: New Cars Got Harder to Afford in September
But supply and demand control car prices. Improving supply could help keep price inflation in check.
An old industry rule of thumb tells automakers to aim for a 75-day supply of new cars — 60 days on sales lots and 15 more on order or in transit.
Fewer means they might not have the right combination of features and colors in stock to appeal to you. More is expensive — dealers make payments on the cars on their lots through a complex financial instrument called a floorplan loan.
At the moment, the average brand has an 82-day supply, according to Kelley Blue Book’s parent company, Cox Automotive.
Different Situation at Each Brand
- Shoppers have more negotiating room at overstocked brands, and little at those with fewer cars.
That average, though, is made up of extremes. Toyota and its Lexus luxury brand sit at one end of the spectrum, with just 35 and 41 days, respectively. Buyers have little room to negotiate with those dealers this month.
Jeep, Dodge, and Ram sit at the other end, all with 149 days or more. Buyers have more negotiating leverage there.
