Report: Escalating Inventories Erode Dealer Profits
U.S. manufacturers and dealers are knocking on the door of the all-time record for days’ supply of new vehicles, an issue compounded by higher floorplan expenses, according to the latest figures from Automotive News.

Fiat Chrysler and its U.S. dealers owned a total of 666,700 unsold new vehicles as of April 1, an industry-long 90-day supply.
Photo courtesy Fiat Chrysler Automobiles
(Bobit) — Near-record-high new-vehicle inventories and rising interest rates for floorplan financing are eating away at dealership profits, according to a new report in Automotive News. The AN Data Center puts the supply of unsold vehicles at 4,188,200 at the start of April. That’s only about 100,000 fewer than factories and dealers had on hand in May 2004, the all-time record high, and more than half a million more than were reported at this time in 2007, on the eve of the Great Recession.
The biggest overstockers are the Detroit 3 manufacturers: Fiat Chrysler leads the nation with a full 90-day supply (666,700 units), then Ford (84 days/715,600 units), then General Motors (83/835,500). Together, they account for more than half of America’s unsold new cars and light trucks.
Compounding the issue are floorplan interest rates, which have grown as high as 5% to 5.5% for some dealers, up from around 1.5% just a few years ago, according to the report.
For top 10 new- and used-vehicle retailer Asbury Automotive Group, that translates to rapidly escalating floorplan expenses, which had already increased by 55% year-over-year in Q1, according to CEO David Hult.
“Right now, there’s excessive inventory out there, and there’s a tremendous amount of pressure from almost all the brands to take additional cars,” Hult told AN, adding, “Space is absolutely an issue, and we’re bursting at the seams. We might even have some of it stored offsite.”
To read the full Automotive News report, click here.
Originally posted on Auto Dealer Today
More Showroom

Affordable, Safe Cars for Teen Drivers
Families looking to balance affordability and safety in vehicles for their teen drivers can look to the updated list of recommended vehicles by IIHS and Consumer Reports.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
Holman Opens Porsche Dealership in Miami
The North Miami store features the brand’s signature Destination Porsche design concept, combining contemporary architecture and technology to create what the auto group calls an ultra-luxury experience.
Read More →
Chicago to Gain Cadillac Rooftop in 2027
The two-story Cadillac dealership is being constructed at the former Lincoln Yards site, owned and operated by Canada-based Jack Carter Auto Group.
Read More →
Mid-Atlantic Ford Store Has New Owner
A growing Maryland automotive group is only the 93-year-old dealership’s third owner after its longtime proprietors retired.
Read More →
Porsche Dealership Breaks Ground in Illinois
Barrington Porsche will be the new location for Murgado Automotive Group’s existing Porsche dealership currently in the Motor Werks of Barrington auto mall.
Read More →
Michigan Auto Group Acquires Ohio Rooftops
Feldman Automotive Group added two new brands, Honda and Toyota, to its portfolio with its latest acquisition of four Fireside dealerships in Ohio.
Read More →
California VW Dealers Go After Scout
The franchisees’ state-level actions follow a California auto dealers trade group lawsuit against the VW affiliate last year, both efforts to stop the EV maker’s plan to sell direct to consumers.
Read More →
EVs Gain Traction in Europe
First-quarter auto sales increased as more consumers took advantage of government incentives. Hybrid deliveries are leading the way on the electrifieds boom.
Read More →
California Holds EV Lead Despite Annual Decline
At nearly 14%, California had the lowest zero-emission vehicle market share in the first quarter since the fourth quarter of 2021, according to the California New Car Dealers Association.
Read More →