New vehicle inventory reached a post-COVID high of 3.25 million units in December 2024, marking a 23% year-over-year increase, according to Cloud Theory’s latest “On the Horizon” report.
However, slower demand growth—up just 8%—and rising supply are raising concerns about market sustainability.


Despite the inventory surge, average vehicle prices held steady at $50,000 throughout 2024, defying typical economic trends. Discounts and incentives increased only modestly, as automakers prioritized high-end models, exacerbating affordability challenges for consumers.
“The mismatch between supply growth and consumer movement is creating stress across the industry,” said Rick Wainschel, Cloud Theory’s VP of Data Science. Days-to-move metrics climbed by 20 days, signaling inventory stagnation.
With potential tariffs looming and supply outpacing demand, automakers may face pressure to adjust pricing strategies in 2025.

