ZeroSum Market First Report November 2022: New Vehicle Inventory and Prices Rise as Used Vehicles Become Harder to Afford

ZeroSum Market First Report November 2022: New Vehicle Inventory and Prices Rise as Used Vehicles Become Harder to Afford

The ZeroSum Market First Report is the automotive industry’s first source to predict month-end vehicle movement.

The ZeroSum Market First Report is the automotive industry’s first source to predict month-end vehicle movement, providing vital supply and demand trend data to automotive marketers and dealers. ZeroSum uses predictive modeling to accurately estimate new vehicle inventory, pricing trends, and market share. 

New vehicle inventory is at its highest level since mid-year 2021 as prices continue to rise and inversely used car inventory and prices are both falling. According to ZeroSum data, new vehicle inventory has increased another 9.64% since the start of October while used vehicle inventory has declined 2.61%. Despite more new cars being available, new car prices rose 0.76% this month to an average of $48,503. At the same time, used car inventory fell for the third straight month while prices dipped 1.55% to an average of $32,983.

Despite the lower used car prices, consumers are struggling to afford used cars following interest rate increases from the Fed. According to Cox Automotive analysts, the average monthly payment for a used vehicle is currently $551, 47% higher than in 2019 and is forecast to reach $570 by the end of the year. As a result, dealers should be prepared to retail fewer used vehicles than last year but should not be too concerned about profit losses. New vehicle sales are expected to be higher than at this time last year, aided by the influx of available inventory.

ZeroSum’s Take: What You Need to Know

Despite current high levels of new vehicle inventory, new car prices remain high. Dealers should capitalize on this opportunity by continuing to acquire and sell new cars.

Here are your key takeaways: 

  1. Purchase used cars you know will sell. Don’t get stuck waiting for your cars to sell. Focus on acquiring the vehicles you can move off your lot the quickest.
  2. Closely monitor market prices and adjust quickly. With prices changing rapidly, watch the market every day and prepare to decrease prices to remain competitive as used car prices fall.
  3. Turn cars quickly and keep your inventory lean. Especially for cars that are higher in value or harder to sell, it will be crucial to reduce your days on lot and be selective with your inventory to maintain profitability.

To read the entire report and view supplemental charts, visit our website:

https://www.zerosum.ai/market-first-report/new-vehicle-inventory-and-prices-rise-as-used-vehicles-become-harder-to-afford

You May Also Like

Credit Unions Show Optimism for 2024 Auto Finance Market

The “Future of Auto Finance” snapshot survey of credit union professionals, reports that credit union worries about liquidity, however, will continue into 2024.

According to Credit Union Leasing of America’s (CULA) recent “Future of Auto Finance” snapshot survey of credit union professionals, credit union worries about liquidity will continue into 2024, with 48% anticipating the liquidity crisis will last for another one to two years or more, and only 9% seeing signs of it abating. 

Krause Auto Group Acquires 3 Florida Dealerships

The dealerships have been renamed and bring the total number of dealerships under Krause Auto Group to 23.

FrogData Unveils AI-Connected Dealership Platform

The core of this innovation lies in FrogData’s unique data repository and the deployment of FrogAI, a series of AI models dedicated to solving distinct business problems within the automotive retail sector.

Solera, Covideo Join to Enhance Technology Integration for DealerSocket CRM

This improved integration provides mutual customers full access to Covideo’s suite of solutions from within the DealerSocket CRM without manually switching between applications.

Connected Dealer Services Unveils Real Odometer Mileage Reporting

The benefits of integrating true odometer readings are substantial. Dealerships can now time their service reminders perfectly, tailored to the actual use of each vehicle.

Other Posts

Cox Auto’s Car Buyer Journey Study Shows Satisfaction with Car Buying Improved

The rise in satisfaction can be attributed to several factors such as improved inventory levels, the return of discounting, and the further proliferation of an omnichannel approach to vehicle buying.

New eLEND Solutions Survey Underscores Challenges of Delivering Accurate Online Payment Quotes

Adding further challenge is the fact that over half of lenders and dealers report that payment terms are negotiated with the online customer before a lender decision.

Experian Unveils Tool to Help Dealers Mitigate Fraud Losses

Fraud Protect is a web-based application that helps automotive dealers detect and prevent fraud while maintaining a positive shopping experience for the consumer.

CUDL Kicks Off 30th Anniversary Celebrating $458 Billion Milestone

Through CUDL’s network of credit unions, auto dealers are able to offer buyers competitive rates and flexible terms.