NADA’s Chief Economist, Patrick Manzi, recently posted a story about how the ongoing inventory shortage is impacting vehicle sales.
According to NADA’s Chief Economist, Patrick Manzi, new light-vehicle sales in November came in below expectations, with a SAAR of 12.9 million units, down 19% from November 2020. Despite November’s month-to-month decline, sales through the first 11 months of the year are up by 7% compared with the same period in 2020. (In New Jersey, sales are up 17.1% through the first 11 months of the year, compared to 2020.)
While November began with a slight increase in inventory levels in some parts of the country, limited vehicle availability keeps sales well below current demand. Month-end inventory in November 2021 was up by 2.9% from October 2021, but inventory could again fall a bit during the final month of the year. According to Patrick Manzi, tight vehicle inventories will continue to limit sales somewhat in the early months of 2022, but the inventory drag on sales should ease throughout the year as inventories build slowly and steadily.
When inventory does arrive, it seems to move off the dealership lot at a record pace. The average number of days a new vehicle sits on the lot, according to J.D. Power, fell to a record low of 19 days in November, down from 48 days in November 2020. Average incentive spending per unit is expected to increase slightly to $1,612 in November from October’s record low of $1,598. With lower discounts and high demand, average transaction prices should reach a November record of just over $44,000, according to J.D. Power. Average trade-in values, which are up 83% year over year, and new-vehicle finance rates, which are down from a year ago, have helped consumers deal with those rising prices to some degree.
Given the ongoing microchip shortage and its expected impact on vehicle deliveries during the final month of the year, NADA has lowered expectations for total light-vehicle sales in 2021, estimating a total of 14.9 million units sold for the year.
The world-renowned annual auto industry event provides the education, business solutions and networking opportunities to help managers drive success in each dealership department — and accelerate their careers.
Who should attend NADA Show 2022?
The NADA Show is not just for dealers. The world-renowned annual auto industry event provides the education, business solutions and networking opportunities to help managers drive success in each dealership department — and accelerate their careers.
Managers of all kinds attend the NADA Show to find real solutions for issues they face in every department, including employee hiring, retention and training, digital and traditional marketing, legal and regulatory updates, parts and service, and sales management.
So who should attend?
- General Managers
- CRM Managers
- Sales Managers
- BDC Managers
- Marketing Directors
- Pre-Owned Managers
- Fixed Operations Managers
- Finance & Insurance Managers
- Social Media Managers
- e-Commerce & Internet Sales Managers
More than 100 workshops and educations sessions will cover the latest trends and legislation affecting the industry and provide management training and best practices to guide dealers and managers along the path to dealership success.
Whether looking to engage with current providers or shopping for new suppliers, attendees will be able to visit more than 500 exhibitors who will be on hand to offer new and exciting ways to help grow your dealership’s success and boost the bottom line.
Visit nadashow.org to learn more and register.
NADA Releases New Driven Guide On Electric Vehicles
Electric vehicles (EVs), being produced in every vehicle class, are a huge opportunity for franchised dealers, who are uniquely positioned to educate customers about EVs and provide them with the firsthand experience of EVs critical to considering a purchase or lease. A Dealer Guide to Electric Vehicles presents solid information about the battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) that will be arriving at dealerships in ever greater numbers — and about issues key to mass adoption of EVs: affordability, charging, range, batteries, safety, service, and the environment. In discussing dealers’ role in addressing each of these issues with customers, the new Driven guide aims to help dealers help their customers embrace EVs.
