Car Supply Is Stabilizing, but Prices Are Slow to Fall for Some Brands

• Car buying may get a bit easier, as average new car prices fell in March and manufacturer supply levels are reaching post-pandemic level highs, according to Kelley Blue Book.

• Across the industry, Cox Automotive data shows an average of 56 days' worth of supply, with domestic manufacturers like Stellantis achieving above 100 days' worth of inventory.

• Many foreign manufacturers continue to struggle with around 30 days' supply, and industry experts warn that prices may not continue falling for long.

You can pop your price-conscious eyeballs back into their sockets and stop calling dealerships in Iowa and Wyoming, folks. After nearly three years of high prices, higher inflation, and joy-less Craigslist scrolling, there is perhaps some light at the end of the car sales tunnel. We won't be surprised if you are scarred from egregious markups and empty lots, though.

Either way, new and used car sales as well as total industry supply are finally trending in the right direction, as Cox Automotive data from March and the early weeks of April show. In fact, the average price paid for a new car in March fell below sticker price for the first time in over a year. This sort of drop was documented at dealerships across the spectrum, with Chevrolet, Chrysler, Dodge, Ford, Hyundai, Kia, Nissan, and Volkswagen all showing an average sale price decline between 0.2% to 3.8% in March, according to Kelley Blue Book.

This slow decline in prices was documented earlier this year by Consumer Price Index statistics, but the rate at which prices have fallen appears to be picking up. And industry experts say the reason behind this shift is clear: supply increases. While some manufacturers still struggle with production, many have regained their footing, increasing availability on dealership lots and lowering sticker prices as a result.

"During March, we saw sales surpass the 1-million mark for a 30-day period for the first time since early September 2021," said Charlie Chesbrough, Cox Automotive senior economist. "Higher sales have been boosted, in part, by improving inventory, which has been running at around 1.8 million or so for the past several weeks."