New Cars Piling Up On Dealer's Lots - Lets Make A Deal

Saving Money Ideas: Become A Schmarter Car Buyer

Washington DC February 28, 2017; The AIADA reported that across dealer lots in America inventory is piling up as automakers produce more cars than are being bought. According to Bloomberg, auto dealers had about 85 days worth of cars and trucks on hand at the beginning of February – about 22 days more than at the beginning of 2017 and eight days more than a year earlier, according to Automotive News Data Center.

“The sales are good, I just have more product on the ground than I’ve had before,” said former AIADA Chairman and New Jersey Dealer Larry Kull, who has about 60 days of passenger cars including Civic compacts and Accord sedans stocked at an office parking lot down the road from his Honda store in Marlton, New Jersey. He prefers to have just 45 days worth of cars on hand.

The buildup suggests automakers will have to cut back production or boost discounts as the market’s record growth spurt peters out. Analysts project automakers’ sales slowed this month to a seasonally adjusted annualized rate of 17.5 million light vehicles, according to a Bloomberg News survey, from 17.7 million a year earlier.

For more on excess supply on some U.S. dealer lots, click here.