Part 4/14:
One of the most striking indicators of trouble is the record-breaking inventory levels. U.S. dealerships are holding just under 3 million new vehicles—an 89-day supply—which is a significant increase from previous years. Used vehicle inventories also swell to about 2.4 million, representing a 23% increase from last year. Dealerships are now rushing to offload surplus stock, leading to a surge in incentives and steep discounts. For example, some vehicles like the GMC Sierra can be discounted by $11,000 from their MSRP, yet sales remain sluggish.