
New-vehicle inventory surged 23% from Dec. 2023 to December 2024, reaching a post-COVID high of 3.25 million units, according to Cloud Theory’s December “On the Horizon” report. Cloud Theory, a provider of data-driven automotive insights, publishes “On the Horizon” monthly, offering in-depth analysis of vehicle inventory, consumer demand, and pricing trends.
New-vehicle inventory rose by more than 600,000 units versus a year ago, climbing steadily throughout 2024. However, vehicle movement grew at a slower, more inconsistent pace, increasing just 8% year-over-year. This imbalance has shifted the industry’s focus toward supply, evidenced by declining turn rates and an increase of 20 days in days-to-move metrics.
Despite elevated inventory levels, vehicle prices remained remarkably stable at an average of $50,000 throughout 2024. Market adjustments—which reflect discounts and incentives made visibly by dealers on their vehicle detail pages—increased modestly but failed to offset inflationary pressures and OEMs’ focus on high-end models.
“Price declines that would normally accompany a growing supply and flatter demand picture have not materialized,” said Rick Wainschel, vice president of data science & analytics at Cloud Theory. “Inflation and a greater emphasis on premium models and higher end trims have kept prices elevated, presenting challenges for many consumers.”
Looking ahead, the automotive market faces competing forces. Potential tariffs under the incoming Trump administration could drive costs higher, while greater supply may compel OEMs to adopt more aggressive discounting strategies.