February New-Vehicle Sales Surge Amid Falling Inventory and Pricing Shifts
New-vehicle days' supply fell to 89 days in February, a 10% drop from the previous month, as a hotter sales pace drove inventory lower, according to vAuto Live Market View. Sales rose 13.6% from January and 5.9% year-over-year, with Toyota, Ford, Chevrolet, Honda, Hyundai, and Kia accounting for 58% of all sales. While affordability remains a challenge amid rising interest rates, these top brands offer over 40 models below the average listing price of $48,316. Meanwhile, high-end vehicle inventory continues to grow, with 75,000 new cars priced over $100,000—up from fewer than 50,000 a year ago. The influx of tax refunds and bonuses has fueled demand, but consumer confidence dipped due to economic uncertainty, including tariff threats. Despite a slight 0.6% decline in average listing prices, new-vehicle pricing remains elevated, with the Mitsubishi Mirage being the only model still priced under $20,000.
Bank of Canada Cuts Rates Amid Trade Tensions and Inflation Concerns
The Bank of Canada cut its key policy rate by 25 basis points to 2.75% on March 12, citing concerns over inflation and weaker growth due to trade uncertainty and U.S. tariffs imposed by President Trump. This marks the seventh consecutive rate cut, totaling 225 basis points in nine months, making the bank one of the most aggressive globally. Governor Tiff Macklem emphasized the challenge of balancing inflationary pressures from higher costs with weaker demand and declined to provide forward guidance on future rate moves. The new U.S. tariffs on Canadian steel and aluminum, along with Canada’s $29.8 billion in retaliatory tariffs, have alarmed businesses, hurt investment, and shaken consumer confidence. The trade conflict is expected to slow GDP growth, disrupt the job market recovery, and push inflation to 2.5% in March. While the rate cut may provide short-term relief for industries like automotive manufacturing, Macklem warned that monetary policy cannot offset the effects of a trade war but must prevent inflation from becoming persistent.
MY25 Subaru Forester ICE Orders Closing Soon – Hybrid Orders Still Available
Due to high commercial fleet demand, MY25 Subaru Forester ICE orders will close on Monday, 3/17. Orders must be submitted and receive a VON by COB that day. MY25 Forester Hybrid orders remain open but will be limited, especially for the Premium trim. Early ordering is recommended.