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New car supply hits 1 million as OEMs raise prices – Remarketing


Supply by brand on Independence Day (December 2021): Lexus and Toyota, respectively, remain last in inventory.  Toyota hopes to catch up, scheduling record production in January.  Stellantis brands - Alfa Romeo, Dodge, Jeep, Chrysler and Ram - have the most inventory.  - Source: Cox Automotive

Supply by brand on Independence Day (December 2021): Lexus and Toyota, respectively, remain last in inventory. Toyota hopes to catch up, scheduling record production in January. Stellantis brands – Alfa Romeo, Dodge, Jeep, Chrysler and Ram – have the most inventory.

Source: Cox Automotive

Vehicle prices also continue to rise, setting new records, with the average list price exceeding $45,000, according to a Cox Automotive analysis of vAuto’s available inventory data.

Total U.S. unsold new vehicle supply stood at nearly 1.1 million units near the end of December. This compares to a revised November available supply of 935,100 vehicles. December marked the first time since the beginning of August, the supply reached and even exceeded the 1 million unit mark.

However, the available supply is still down 62% y/y. In terms of raw numbers, the current unsold new car supply is 1.8 million vehicles less than a year ago’s supply and less than 2 ,5 million compared to 2019.

The supply of new unsold vehicles during the day was 35 vehicles when it opened in January, up from 30 in early December. Total daily supply bottomed out at the end of September at 25. Supply, however, Dates at the end of December are still 48% lower than at the end of 2020.

For comparison, the December 2020 new vehicle inventory was around 2.9 million units for a 68-day supply. In December 2019 before the pandemic, the supply was 3.5 million vehicles in 82 days, according to Cox Automotive data.

Cox Automotive Intraday Supply is based on daily sales rates for the most recent 30-day period. Due to improved inventories throughout the month, December sales were slightly higher than forecast. Full month sales in December were down 26% compared to December 2020, with another day of sales. December’s seasonally adjusted sales rate was 12.4 million, down from 12.9 million in November. Compared to previous years, the December 2021 SAAR is a lot lower than 16.3 million. of 2020 and 16.9 million of 2019.

Charlie Chesbrough, senior economist at Cox Automotive, said: “Inventory levels are improving modestly and the sales increase in December compared to November reflects this improvement in supply. “The expectation is that this trend will continue throughout 2022 as many of the supply chain disruptions of 2021 begin to disappear. However, the rise of the Omicron variant is likely to disrupt production once again, so risks to the vehicle market and its availability remain elevated. ”

There is broad agreement that the global shortage of computer chips that affected vehicle production last spring will continue into 2022. Opinions on the extent vary greatly. All in all, most auto executives and analysts expect chip supply and vehicle production to improve through 2022, especially in the second half of the year. However, inventories are forecast to be tight as consumer demand for vehicles, supported by delayed purchases and a strong economy, remains high as new vehicle supplies near. over.

Prices continue to climb

  • In December, the average list price – or asking price – for new vehicles set another record of $45,505, up from a revised $45,084 at the end of November. For comparison, the same period December 2020, the average list price is $40,650. In December 2019, it was $38,362, according to Cox Automotive data.
  • The average transaction price (ATP) – the price that buyers actually pay – also set a record $47,077, Kelley Blue Book reports. December marks the 9th consecutive month of ATP gains. The average incentive drops to $1,816, at least under the 20-year rule. The median incentive as a percentage of the average price has dropped to an all-time low of 3.9%.
  • The median list price for luxury vehicles was $65,389 in December, a jump from $63,845 in November. The median list price for luxury vehicles was $41,994, up from $41,376. , according to Cox Automotive data.

Sales in December Discharge of luxury inventory

December has traditionally been a strong month for luxury sales, boosted by better-than-expected inventories throughout the month. Among more than 1.1 million new cars in inventory at the end of December, there were 146,591 luxury cars with a one-day supply of 32; 948,522 non-luxury vehicles in 35 days supply. Super luxury cars have completed the supply.

In December, the number of days it takes to sell a car – just under 27 – and the number of days a car is left in stock fell to a record low, according to Cox Automotive data.

The lowest supply is in the cheapest category, under $20,000, with little service to begin with and inventory falling below 4,500 vehicles for an 18-day supply. Price ranges from $20,000 to $50,000, the majority of the market, has a 31 to 33-day supply, up from the previous month. Vehicles priced above $50,000 have a 40-day supply.

Domestics Build inventory; Asia and Luxury Brands with Lowest Supply

Domestic automakers saw inventories rise in December. Among domestic brands, only Cadillac was below average and only marginally. Stellantis brands – Alfa Romeo, Dodge, Jeep, Chrysler and Ram – have the most inventory.

Lexus and Toyota respectively remained last in terms of inventory. Toyota hopes to catch up, scheduling record production in January.

After sales spiked in December, luxury brands have seen their inventories dry up. Acura, Porsche, Land Rover and Mercedes-Benz, BMW and Genesis have below-average inventories alongside Lexus. In the non-luxury car segment, Kia, Honda, Mazda and Subaru ranked at the lowest position.

By segment, the supply of small and mid-size cars is at the lowest, largely because Asian automakers are the largest automakers and sellers. SUVs, especially luxury ones, are also in lower-than-average supply.

Large and imported luxury cars have a higher supply. Full-size pickup trucks, dominated by domestic automakers, are in stock.

Originally posted on Vehicle Remarketing

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