Signal Desk · Companies

Auto dealers warn of high inventory and financing costs

2026-11-06 · 1 source · BusinessLine Companies

In short

Passenger vehicle inventory was about 43-45 days, FADA said, far above its recommended 21-day level.

The dealers’ group said inventory and financing costs are risks for demand. That could make it harder for dealers if sales slow.

What the reporting says

Passenger vehicle inventory stood at about 43-45 days, well above FADA’s recommended 21-day level, the Federation of Automobile Dealers Associations said. The group flagged inventory and financing costs as risks to demand. The elevated stock levels suggest dealers are carrying cars for longer than advised, which could pressure sales if demand weakens.

Why it matters

The Federation of Automobile Dealers Associations said passenger vehicle inventory remained around 43-45 days, above its advised 21-day level. It flagged inventory and financing costs as risks to demand.

Touches: Companies, Markets

Sources