The automotive industry is facing a severe inventory bottleneck, and the root cause is entirely tied to consumer affordability.
At the 2026 Auto Forum New York, Tom Castriota detailed how the lack of accessible, entry-level vehicles is creating a dangerous ripple effect across both new and used dealership lots. With average transaction prices pushing monthly payments out of reach for the everyday buyer, consumers are holding onto vehicles for a decade or more. This means the traditional pipeline of three-to-four-year-old trade-ins and lease returns has dried up.
Operators must pivot their inventory acquisition strategies immediately. Relying on organic showroom trade-ins is no longer enough.
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