New-vehicle inventory finally 'shows signs of stabilization'

The new-car inventory has stabilized slightly due to the new-car sales pace slowing down.

However, some automakers are still facing bigger supply issues than others, with minivans being the vehicle in shortest supply of any vehicle type.

“The new-vehicle market is starting to show signs of stabilization around inventory levels,” Cox Automotive Senior Economist Charlie Chesbrough told Kelley Blue Book.

According Kelley Blue Book, automakers measure the supply of new cars with an inventory metric, which is a number that represents how long it would take them to sell out of cars if they stopped production that day. The nationwide inventory average was 29 days at the end of June but climbed to 31 by the end of July.

Kia, Honda and Toyota tied for the tightest inventories at the end of July with 20 days of supply each, but other automakers such as Alfa Romeo dealers had 105 days, Fiat dealers were at 97 days and Ram has 65 days respectively. Minivans have seen the lowest inventory of any vehicle type, and second on that list is compact cars, due to limited supplies of Toyota Corolla and Honda Civic models.

The new-car inventory stability might also be masking the possibility that car shoppers are walking away from dealer showrooms because they can’t find their choice of vehicle — either due to high costs or that the vehicle is simply not available to purchase.