Good Times for Some, but Empty Lots Spread
For dealers who still had cars and trucks to sell, June brought booming demand and another jump in the industry’s average transaction price, which topped $40,000 for the first time. But for dealers with limited inventory, it was a prelude to a summer of missing out on the party.
Sales Pace Slowing as Dealerships Run Dry
Cox Automotive expects total sales of 4.5 million in Q2, up 1.2% from 2019 and up 51% from the same period of 2020, in the early months of the pandemic. For June, Cox estimates that the SAAR fell to 16.4 million from 17.1 million in May.
Car Dealers Are Selling More Vehicles Above the Sticker Price
With inventory tight and customers clamoring for cars and trucks, auto dealers are charging more, increasing the price above sticker and in some cases requiring customers buy certain add-ons, such as protective coatings and accessories, as part of the increase.
Dealers Advertising to Replenish Inventory
The pandemic and ensuing inventory challenges in 2021 have turned dealer advertising on its head. Today, auto dealers around the country are leveraging advertising to attract cars and trucks, in addition to shoppers themselves.
Average New-Vehicle Prices Rise $2K+
The estimated average transaction price for a light vehicle in the U.S. was $41,263 in May 2021, according to Kelley Blue Book. New-vehicle prices increased $2,125 (up 5.4%) from May 2020, while increasing $493 (up 1.2%) from April 2021.
No Summer Break for the Chip Shortage
AutoForecast Solutions estimates that the North American industry could lose more than 340,000 scheduled vehicles over the next two months, because of chip shortages and normal summer factory shutdowns and model changes.
U.S. Auto Sales to Hit 16.4M in 2021
According to AlixPartners, U.S. sales will rise to 16.4 million vehicles this year, up from 14.6 million in pandemic-scarred 2020, and will climb to 17.2 million in 2022 and remain above 17 million through 2025.
Car Prices Are Soaring, and They’re Not Going to Stop
The average new car price hit a record $38,255 in May, according to JD Power, up 12% from the same period a year ago.
Used-Car Price Index Extends Record Run
May was the fourth straight record month for the Manheim Used Vehicle Value Index, which hit the 200 mark for the first time ever, parent company Cox Automotive confirmed. The index reading for May was 203.0, which beat year-ago figures by 48.2%.
Auto Sales Strong, Off Slightly from April
According to NADA May’s SAAR totaled 17 million units, as April’s was revised upward to 18.8 million. May 2021’s SAAR was up 40.3% from May 2020’s, when light-vehicle sales had just begun to turn around from April 2020’s pandemic lows.
Despite Inventory Woes, Automakers Post Records as May Sales Soar
Several automakers hit monthly sales records in May. For the seven automakers reporting results for last month, sales rose 37% from May 2020. In addition, five of those automakers even beat numbers from May 2019 — a sign that demand is back.
Automakers Have Just a Few Weeks of Car Supply Left on U.S. Lots
Carmakers’ new-vehicle inventory has dropped to a record low in the U.S. Inventory on dealer lots stood at just 23 days’ supply at the end of May, down from 33 days a month earlier, according to JPMorgan. The industry norm is around 60 days.
Used Vehicle Pricing Hits Bizarre Levels
An analysis by Cox Automotive reveals the average listing price for used vehicles reached $22,568 in April — the first time it’s ever crossed the $22,000 mark.
Holiday Auto Shoppers to Find Limited Supply
Despite the challenging market conditions, likely fearing even fewer choices and higher prices in the months ahead, new data from Kelley Blue Book reveals that car shoppers clearly are in buy-now mode.
Microchip Crisis Takes Big Toll on Detroit 3
Of all the North American models affected by chip-related changes in scheduled production, the Detroit 3 have accounted for the top 10.
TV: Where Deals Begin for Vehicle Loans
Based on a The Media Audit survey, approximately 90% or more adults 18+ with a car loan watch as much as six hours of TV daily. Unsurprisingly, the older the age group with a car loan, the more time spent watching TV daily.
Tesla Roadster Prototype Pops Up at Petersen Automotive Museum
The Petersen Automotive Museum in Los Angeles, California, is hosting a two-week exhibition featuring a prototype of the next-gen Tesla Roadster.
CPO Vehicle Sales Outpacing Record 2019 by 5%
In 2019, the strongest year for the certified pre-owned vehicle market, there were 910,578 CPO sales in the first four months of the year. The first four months of 2021 beat that sum by more than 45,000 units (up 5%).
New-Vehicle Prices Up 2.2% YOY in April
The estimated average transaction price for a light vehicle in the U.S. was $40,768 in April 2021, according to Kelley Blue Book. New-vehicle prices increased 2.2% from April 2020, and up 0.23% from March 2021.
EV Shopping Surges, SUVs in Demand
According to Kelley Blue Book, 19% of all shoppers considered an EV in Q1, and sales of EVs grew 81% year-over-year and hitting 300,000 units for the first time.