The shortage of new vehicles is well and truly over, and here's the proof.
Remember the parts shortages, slowed production and scarcity of new vehicles on dealer forecourts during the COVID-19 pandemic? With a few exceptions, such as Hyundai and Toyota, that's all history now.
A new report from S&P Global Mobility reveals that North American automakers had nearly 2.9 million new vehicles in inventory in June, 57% more than at the same time in 2023. This is the 13th month in a row that an increase has been recorded.
Compared with the height of the pandemic, inventories for all manufacturers have more than tripled. No kidding.
For consumers, this is excellent news, of course. It means much more choice and much shorter delivery times. In many cases, the desired vehicle doesn't need to be ordered from the factory, as it's already sitting in a yard somewhere.
Of course, another reason for the meteoric rise in new vehicle inventories is the general rise in prices combined with interest rates that remain very high most of the time. Some manufacturers have started to roll out promotions and discounts again to attract potential buyers, but the fact is that fewer people are currently interested in changing vehicles.
Speaking of which, we're curious to see the sales figures for Canada at the end of the year. They jumped by 11.8% in 2023, the biggest annual increase since 1997, but don't count on it in 2024.
