Holiday will likely spill over into the start of 2025 as some dealers continue to struggle with over-supply. An uptick in discounts wasn’t enough to clear some dealer lots in December. US car dealers had enough vehicles on lots or in transit to last 75 days heading into January, up more than 18% from the same month a year ago, according to data from .
A 60-day supply is considered the benchmark for healthy inventory. Most brands had inventory levels above that 75-day average, with nine brands holding more than 100 days worth of cars at the end of the month, according to Cox. This headache for dealers and car companies gives budget-conscious new-car shoppers a much-needed advantage.
The supply glut will likely lead to more discounts and give shoppers more room to negotiate for a better deal on a car that has sat for too long on a dealer lot. is a key issue for demand right now, as the average price paid for a new car inches closer to $50,000. That’s delivering some stark sticker shock for customers who spent the last few years sitting out of the market .
Best brands for a deal Stellantis brands, including Dodge, Ram, and Jeep, top the over-supply list with between 107 and 122 days' supply. The embattled Detroit car company struggled with cratering demand last year amid higher prices. After the departure of former , dealers are confident that new management will bring sticker prices back in line with customer expectations.
In the meantime, discounts are likely to be prevale.
