The Current State of the Auto Market: Inventory, Interest Rates, and Buying Opportunities

🚗Inventory levels have increased significantly, with some brands having high levels and others below average.

💰Interest rates are putting pressure on both dealers and consumers, resulting in increased negotiability.

🔥There is a large inventory of prior model year cars yet to be sold, creating buying opportunities for consumers.

🛒The market is shifting from a seller's market to a buyer's market, leading to more incentives and discounts for buyers.

🔥Used car prices, especially for luxury vehicles, vans, and trucks, are finally starting to cool down.

Are there more cars available for sale compared to previous months?

—Yes, inventory levels have increased substantially in recent months, up 22% since the fall of 2023.

How are interest rates affecting the auto market?

—Interest rates are putting pressure on both dealers and consumers, leading to increased negotiability and more incentives.

Are there buying opportunities for consumers?

—Yes, there is a large inventory of prior model year cars yet to be sold, creating opportunities for buyers.

Is it a good time to buy a new car?

—Yes, as the market is shifting from a seller's market to a buyer's market, there are more incentives and discounts available for buyers.

Are used car prices still high?

—Used car prices, especially for luxury vehicles, vans, and trucks, are finally starting to cool down.

00:00The auto market is experiencing a surge in inventory, with some brands having high levels while others are below average.

01:07Interest rates are putting pressure on both dealers and consumers, leading to increased negotiability and more incentives.

02:23There is a large inventory of prior model year cars yet to be sold, creating buying opportunities for consumers.

05:55The market is shifting from a seller's market to a buyer's market, leading to more incentives and discounts for buyers.

06:11Used car prices, especially for luxury vehicles, vans, and trucks, are finally starting to cool down.

09:58Average used car APR is close to 13%, making it important for consumers to get pre-approvals and shop around for the best rates.

11:36Dealers are more motivated to work with customers to sell their inventory due to high interest rates and floor plan expenses.

12:38Used car prices are starting to decline, but trade-in values may be lower due to the difference between wholesale and retail prices.