ZeroSum data shows that new vehicle inventory has decreased 1.81% since the start of June while used vehicle inventory increased over 2.5%. As a result, average new car prices rose for the fifth straight month to $48,379. Used car prices also saw a slight uptick from June, increasing to $34,061 due to overall demand.
Several auto makers are continuing to report supply chain issues and sales declines. GM sales declined 15% in Q2 after 3 straight quarters of growing market share. Mercedes cited COVID lockdowns and supply chain issues for a 16% drop in Q2 sales while BMW reported selling 13% fewer cars in the first half of 2022 than in H1 2021 due to similar issues. After reaching over $5/gallon in June, the national average price of gas fell to $4.47 this month. This is the first-time gas prices have fallen below $4.50 since May. This suggests that the worst of the oil crisis may finally be in the rear view.
ZeroSum’s Take: What You Need to Know
New vehicle inventory decreases causing used car prices to rise. Dealers should keep a close eye on these price fluctuations and continue to turn used cars as quickly as possible to maximize profits.
Here are your key takeaways:
Keep selling used. As new vehicle inventory remains low, continue marketing your pre-owned cars to grow sales.
Price strategically. With used car prices increasing, adjust prices accordingly to remain competitive and yield maximum profit.
Focus on EV acquisition. Amid higher gas prices, new and used EV demand and prices are high. Ensure your dealership is poised to win priority allocation from your manufacturer.
To read the entire report and view supplemental charts, visit our website: https://www.zerosum.ai/blog/zerosum-market-first-report-2022-7
About ZeroSum
ZeroSum is a leader in software, marketing, and data. Powered by its SaaS platform, MarketAI, ZeroSum is simplifying and modernizing automotive marketing by leveraging artificial intelligence, data, and scaling ability to acquire new customers. ZeroSum is the first and only company that matches consumer demand with automotive data in real time. For more information, visit www.zerosum.ai.
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SOURCE ZeroSum
