GRAND RAPIDS, Mich., Oct. 25, 2022 /PRNewswire/ — 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.
ZeroSum New Vehicle Market First Report Data
ZeroSum data shows that new vehicle inventory has increased another 12.19% in October, the second consecutive month it has risen over 10%. However, used vehicle inventory is another story, decreasing 0.65% this month. Despite more new cars being available, the average new vehicle price rose 0.37% to $48,139 which is just under MSRP. At the same time, average used vehicle prices decreased 1.34% to $33,502.
More available inventory doesn’t mean that automakers are out of the woods when it comes to supply chain hiccups. This month, Ford increased the price of its F-150 Lightning again, up another $5,000 this time due to supply chain issues. Meanwhile, Toyota admits it will likely fail to hit its previous production target of 9.7 million vehicles due to the semiconductor shortage. It will take OEM’s a long time to return to normal levels of production, but they are well on their way.
This month, Wall Street also has concerns about auto loans as used car prices fall and interest rates increase. With fears of a recession and many people defaulting on loans, demand could decrease. Dealers need to watch turn rates and be prepared to adjust prices accordingly. As long as there is pent up demand, prices can remain high. As supply catches up with demand, profits could take a hit.
ZeroSum’s Take: What You Need to Know
With significantly more new-car inventory available, used car prices continue to decline this month while new car prices remain consistent.
Here are your key takeaways:
Be ready for a new-car inventory increase. Inventory levels aren’t back to normal, but they’re getting closer. Be prepared to stock and sell more new cars this winter.
Price used cars strategically. Used vehicle prices are down this month, meaning you may need to adjust prices to remain competitive.
Monitor turn rates and demand. If turn rates slow, prices may need to be adjusted to meet the market.
To read the entire report and view supplemental charts, visit our website:
https://www.zerosum.ai/market-first-report/new-vehicle-inventory-reaches-highest-level-since-june-2021
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
