Cars. Cheaper and not selling.

The average price of a new vehicle was just over $47,000 last month, down 2.6% from December. Meanwhile, 2.6 million are sitting on lots. 

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Welcome to the Know the Difference Minute for Wednesday, February 21st.
Classic case of supply and demand. New car prices are headed down as the highest inventory levels in years force dealers and automakers to reduce margins.
The average price of a new vehicle was just over $47,000 last month, a 2.6% drop from December according to Kelley Blue Book.
Here’s the supply part. New vehicle inventory currently stands at 2.6 million units, according to Cox data, which is a 49% increase in the past year.
Affordability is still an issue. Prices in general are up nearly $11,000 from a year ago. Loan rates are high. The average auto loan rate on a new vehicle is 9.68%.
In the EV world, Ford has slashed prices on 2023 Mach-E Mustangs by up to $8,000. The Blue Oval is finding supply is far greater than demand.
For Dave Spano, I’m Danny Clayton from Annex Wealth Management. That is your Know the Difference Minute.