No sensationalism, just facts and context. 
New car sales drop in January as dealer lots fill up
New car sales drop in January as dealer lots fill up
Sales of new vehicles dropped 25% in January, according to Cox Automotive. That’s not exactly surprising, as January is typically a slow period in the automotive market.
For those who are out shopping for new cars, they’ll likely see more vehicles available on dealers’ lots as inventories were up 14% compared to a year ago.
Dealerships were pretty barren for a while, after pandemic shutdowns and chip shortages messed up car manufacturing. But slowly and steadily, lots have filled back up.
“Higher inventory levels on dealer lots are really good for the buyers,” said Sam Fiorani at AutoForecast Solutions. “If you have more to choose from, dealers want to get them off the lot, and so they will negotiate.”
And they might throw in a lower interest rate loan or a rebate. And yet, average new car prices are still up there — 2.5% higher than a year ago.
Erin Keating at Cox Automotive said that’s largely because of the kinds of vehicles carmakers have been building, and drivers have been buying.
“In America, we really like our vehicles large. We like them to come with all the bells and whistles, and we want every variety in between,” said Keating.
Providing all those options is costly, so carmakers charge more. And they’re unlikely to bring prices down anytime soon, she said, especially if they’re hurt by more tariffs from the Trump administration
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