Despite the continued slump in auto sales, recent statistics show that sellers remain at an advantage in the marketplace. New vehicles are in high demand, but with high prices to match, many car buyers aren’t ready to close the deal.
Compared to the first half of 2021, sales through June 2022 have fallen 19%. Manufacturers had hoped to alleviate supply chain issues as the year progressed, but these numbers prove that car dealerships are still having trouble getting vehicles on their lots – and many buyers just aren’t buying.
Read on for year-end projections, and to learn more about when experts think the market will rebound. Then, contact Motivated Marketing today! Our marketing specialists can’t wait to help maximize your sales through targeted, impactful ad campaigns.
Are Car Sales Increasing?
While we hate to start on a negative note, the honest answer is no. With access to inventory still a struggle nationwide, new vehicle sales (if the current trend continues) will finish the year below 2020.
Some statistics are especially telling, like the year-over-year declines experienced by auto brands like Honda, Mazda, Nissan, Buick, and more. Honda sales, for instance, were 54% lower in June than they were that month in 2021 – which correlates to a drop in inventory from 130,000 to 40,000 new vehicles.
This summer was optimistically expected to bring some relief, but most dealerships didn’t experience much of a bump in inventory. This continues to put car buyers at a disadvantage, with low demand causing a spike in prices. A few domestic brands, like Dodge, Jeep, Ford, RAM, and Chevy, have seen an uptick in inventory – but still nothing comparable to pre-pandemic levels.
In fact, Cox Automotive adjusted its full-year forecast after seeing last month’s numbers, dropping new vehicle sale projections in the U.S. from 15.3 million to 14.4 million.
Which Are More Popular: New Cars vs. Used Cars
In the past, used vehicles were a great alternative to buying new. Many customers opted for a low-mileage, pre-owned vehicle that still had plenty of years left in its lifespan. What these used vehicles lacked in state-of-the-art features, they made up for in savings.
Plus, new cars lose their value quickly, depreciating about 20% in the first year and then at a slower rate after that. The pandemic flipped the script though, and muted depreciation. The result? The price of used vehicles rising toward that of new ones, and encouraging buyers to pay just a little extra for a brand-new ride.
With gas prices rising as well, electric vehicles and fuel-efficient models are gaining traction. Many used electric models, in particular, are priced nearly as high as new ones, making it an easy choice for customers. Why pay new vehicle prices for a used vehicle, after all?
Certified pre-owned vehicles have always served as a perfect compromise between new and used, offering a “like new” vehicle at a more affordable price. The biggest perk to purchasing one is the peace of mind that comes from knowing your CPO vehicle has passed a thorough inspection and reconditioning process. Bonuses like roadside assistance and extended warranties are typical as well.
Top Auto Market Sales So Far in 2022
Automaker Sales YoY
GM $1.095 million -17.7%
Toyota/Lexus $1.045million -19.1%
Ford $925k -6.5%
Stellantis/FCA US $813k -15%
Honda/Acura $506k -39.30%
Nissan/Infiniti $384k -34.20%
Hyundai $343k -16%
Tesla $274k 88.70%
Subaru $263k -17.9%
Volkswagen $252k -31.8%
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