Mike Manley, CEO of America’s largest dealer group, AutoNation recently said in an earnings call, that with barely a million vehicles in dealer inventories in the U.S. sales incentives have dried up and aren’t coming back anytime soon. “We will not return to excessively high inventory levels that depress new-vehicle margins, Manley said during an earnings call. “Significant discounting and high incentives can also damage a brand, which is another reason for our industry to balance appropriately supply and demand.” With dealers and OEM’s alike reporting strong, if not record profits, there doesn’t appear to be a rush to return to excess inventory from a supply side perspective. With the semiconductor shortage expected to drag on throughout 2022, conditions for a seller’s market are bound to continue.