Summary
This report presents a detailed analysis of the inventory risk factors affecting U.S. vehicle dealerships in 2024. It outlines the expected challenges, including consumer affordability issues driven by high interest rates, tight credit conditions, and persistent new vehicle prices. The report provides predictions on production levels, with expectations of new vehicle inventory growth which may allow increased incentive levels, potentially mitigating some price pressures observed in 2023. Additionally, new vehicle sales are projected to rise by 1% to 15.7 million units, though high interest rates may continue to exert pressure on demand. The report also discusses electric vehicle market trends, indicating that while sales may increase, production is likely to outpace demand, leading to higher inventory levels. It concludes by emphasizing the need for dealerships to understand these potential risk factors to effectively manage sales and profitability in the upcoming year.
