Stellantis, Toyota and Honda Buck Auto Market Stabilization Trend

Today, Cars.com released its September Industry Insights Report that showcased overall stability through the mark but highlighted the brand specific trends affecting consumers interested in some of the most popular models. The market is seeing a shift as Stellantis is cutting prices while Toyota and Honda see strong demand.

While overall average prices of new vehicles remained steady, Toyota and Honda defied the trend with price increases of 3% and 8% YoY respectively, with limited supply and strong demand responsible for the elevated prices. Meanwhile, Stellantis saw average list prices fall across its brands with Jeep down 5%, RAM by 7% and Dodge by 3%. All three brands were below average on the Cars.com New Car Price Index (NCPI), which estimates the full cost to buy and finance a vehicle, meaning discounts and customer incentives will be needed to move inventory.

See below for additional highlights from this month's report:

New-Car price down 1.5% YoY, up 0.4% MoM - average price is $49,154
New-Car supply up 27.2% YoY, down 5.1% MoM
The annual rate of inventory growth is normalizing: average list price stabilizes at $49,000 for the past 12 months
Used-Car price down 4.8% YoY with no MoM change - average price is $28,882
Used-Car supply is down 4.5% YoY, and down 9.5% MoM
Trade-in values continue to slide YoY, with September 2024 figures dropping below September 2023 numbers

Surplus Inventory Slightly Drives Down New-Car Prices as Used-Car Market Stabilizes, According to Cars Commerce's September Industry Insights Report

The Automotive Market Sees a Shift as Stellantis Brands Cut Prices While Toyota and Honda Face Strong Demand

CHICAGO, Oct. 21, 2024 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS) (d/b/a "Cars Commerce."), an audience-driven technology company empowering the automotive industry, outlines shifts in the automotive industry in its September Industry Insights Report. This comprehensive report, crafted by Cars Commerce's expert data analysts, delves into macro and micro automotive market insights by analyzing supply, demand, pricing and consumer behavior data from across the company's platform, including Cars.com^®, Dealer Inspire^®and Accu-Trade^®.

"The automotive market is undergoing an adjustment as new-car prices declined, with a 1.5% year-over-year drop in September driven by significant inventory surpluses, particularly among brands like Jeep, Ram and Dodge, which are sitting on dealer lots an average of 131 days — well above the market average of 72 days," said David Greene, industry and marketplace analytics principal, Cars Commerce. "While the average price of a new car is steady around $49,000, Cars.com's New Car Price Index fell almost 5 ppts YoY, showing some of the impacts of available incentives and discounting for select models. Meanwhile, the used-car market continues to hold steady since early 2024, but average prices are down 5% year over year, dropping to $28,882, ultimately offering more affordable options for price-conscious consumers."

Honda, Toyota See Price Increases While Stellantis Faces Price Declines

In September, Jeep's average new car list price fell by 5%, Ram by 7% and Dodge by 3%, signaling a challenging landscape for these brands that typically carry above-average prices. In addition, all of these Stellantis brands index below-average in Cars.com's New Car Pricing Index, which estimates the full cost to buy and finance a vehicle, inferring that Stellantis deployed heavy customer incentives and discounts to help sell down inventory. Stellantis also recently cited production cuts as a factor for lower shipments in the third quarter to address the excess supply of vehicles. Despite these pressures, the overall average price of new vehicles remained steady at approximately $49,000, while brands like Toyota and Honda defied the trend. These brands saw price increases of 3% and 8% YoY, respectively, as strong demand kept prices elevated.

Seasonal Trends and Inventory Adjustments

The new-car market in September saw a seasonal dip in searches, down 5% month over month, following typical post-Labor Day patterns. The impact of Hurricane Helene in the southeastern U.S. (Florida, Georgia, Tennessee, Virginia and the Carolinas) further contributed to September's slowdown, with demand down 7% week over week starting Sept. 26 in affected markets compared to 1% WoW for the rest of the country. The full effects on demand, sales and inventory — especially due to production halts at some plants — won't be fully visible until the end of October when the complete impact of Hurricane Helene and the fast-following Hurricane Milton is assessed. However, inventory levels in September remained elevated for now, up nearly 30% YoY as manufacturers like Ford, Chevrolet and Honda replenished stock after 2023's chip shortage recovery.

Ford led inventory growth in September, with models like the Super Duty F-250 and Bronco driving a 33% YoY increase. Chevrolet and Honda also expanded inventory significantly. Despite the rise in inventory, the market gradually stabilized in September, with days live averaging 72 days — up 42% YoY but still below the 80-day average we saw in 2019.

Used-Car Inventory Continues to Increase in Age and Miles

The used-car market, in contrast, remained stable in September, with the average price standing at $28,882, which is nearly unchanged since the beginning of 2024 but down 5% YoY. Consumers continue to gravitate toward used vehicles for affordability even as the average vehicle age increases slightly to 5.2 years with mileage just over 60,000. This stability is helping buyers navigate the market amid high interest rates and fluctuating new-car prices.

New and Used EV Market Continues to Fluctuate

The electric vehicle segment is also experiencing a divergence between new and used markets, with used EV searches growing faster than new, although EV inventory isn't entirely aligned with demand growth. New EV inventory outpaced demand to grow by nearly 50% YoY, while sales lagged and the average price decreased 3% YoY, vs. a 2% YoY drop for all new vehicles, with new models like the Chevrolet Blazer EV and Cadillac Lyriq sitting on dealer lots longer than average. Used EVs saw a 9% YoY price drop compared to a 5% drop for all used vehicles, while consumer interest in used EVs continued to grow with a 32% YoY increase in consumer searches compared to a 2% decrease for all used-car searches.

To download the full report, visit www.carscommerce.inc.

*Inventory, searches and list price on Cars.com.

ABOUT CARS COMMERCE™

Cars Commerce™ is an audience-driven technology company empowering the automotive industry. Cars Commerce™ simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce™ platform is organized around four industry-leading brands: the flagship automotive marketplace and dealer reputation site Cars.com^®, award-winning technology and digital retail technology and marketing services from Dealer Inspire^®, essential trade-in and appraisal technology from Accu-Trade^®, and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.

SOURCE Cars Commerce