Supply remains 26% higher than it was a year ago.
“Ask prices finally reflect lower wholesale prices,” said Charlie Chesebrough, chief economist at Cox Automotive. “By Thanksgiving, the price gap between this year and last year, which is now 2%, will likely disappear.”
Cox Automotive is the parent company of Kelley Blue Book.
New and used car price trends are starting to diverge. An average new car sold for about $48,281 last month.
Car dealers measure their supply of cars for sale in a metric they call “inventory days”—how long it would take for cars to sell at today’s sale price if they couldn’t get more.
As with new cars, the lower the price, the narrower the inventory. The days offer increases with every $10,000 increment in the price category. The display day for vehicles under $10,000 is 33. At the other end of the spectrum, the display day for vehicles over $35,000 is 68.
Honda, Hyundai, Lexus, Mazda, Toyota, and Volkswagen dealerships all report less than 50 days supply.