New-vehicle inventory volume topped 3 million units at the start of November for the first time since the pandemic, which is higher by more than 677,000 units compared to one year ago, according to a Nov. 26 Cox Automotive report.

According to Charlie Chesbrough, senior economist at Cox Automotive: “With the U.S. election now in the rearview mirror, we may see vehicle sales finish the year in a strong position. With less uncertainty in the market, consumer confidence is moving higher, which will likely increase consumer willingness to buy a new vehicle. Additionally, vehicle affordability is improving, thanks to higher incentives and falling auto loan rates, which increase consumers’ ability to buy.”

Days’ supply climbed to 85 at the start of November, up two days from the revised start of October count and 10 days higher than in November 2023. Higher inventory levels are also pushing sales incentives higher, with new-vehicle sales incentives jumping to 7.7% of the average transaction price in October, marking the fifth consecutive month of higher incentives and the highest level since April 2021.