2 Auto Retailers to Watch Amid Tight Inventory and Costly Loans

The auto retail and wholesale industry is navigating a challenging landscape with resilient demand but rising affordability concerns. While tighter inventory supports dealer pricing power, elevated vehicle prices, rising borrowing costs, and a struggling EV market—following the expiration of federal tax credits—create headwinds. However, companies like Penske Automotive and Lithia Motors are better positioned through strategic acquisitions, digitization, and shareholder-friendly capital allocation.