As business in the automotive sector continues to climb back to pre-pandemic levels, there has been a disproportionate relationship between the supply of new vehicles and the demand for them. This has led to the low dealership inventory and little to no incentives that we’ve become so accustomed to in the past few years. However, Buick new vehicle inventory stood at 121 days supply as of November 2022.
This means that Buick dealers currently have sufficient inventory of the brand’s crossover lineup, which includes the Enclave, Encore, Encore GX and Envision. However, it’s worth noting that Encore production recently ended.
A 121 days supply means that dealerships have enough inventory on-site to sustain current sales volume for the next 121 days. As a reference, a 60-day supply was considered optimal in the U.S. auto industry prior to the COVID-19 pandemic. On a days supply basis, Buick was the GM brand with the highest level of dealer inventory as of November 2022, as well as the highest of all brands that compete in the U.S. market.
According to a report from Cox Automotive, industry-wide inventory is on the rise, and is currently reaching its highest levels since May 2021. In fact, the supply of new vehicles was up 81 percent in November 2022 when compared to November 2021. However, it’s important to note that while inventory is on a positive trend, it remains low in a historical regard, where pre-pandemic records reflect an 86 days supply as the norm. This supply level provides a good balance of consumer choice while keeping inventory costs low.
“Timing is everything,” Cox Automotive’s senior economist Charlie Chesbrough said. “Production is finally ramping up after being stymied by the chip shortage just as demand started to waiver and vehicle sales slowed down.”
This trajectory means that Buick has plenty of inventory on dealership lots, which could provide consumers more bargaining power over the price of a new vehicle. In addition, the all-new 2024 Buick Envista is set to launch in the North American market soon, which could add more days of supply to Buick inventory.