With More New Cars Available, New and Used Vehicle Prices are Coming Down
ZeroSum predicts that by the end of September, new vehicle inventory will be up 16.69% from the start of August while used vehicle inventory will be down 1.15%.
ZeroSum predicts that by the end of September, new vehicle inventory will be up 16.69% from the start of August while used vehicle inventory will be down 1.15%.
IMAGE: ZeroSum
GRAND RAPIDS, Mich. – The ZeroSum Market First Report predicts month-end vehicle movement, providing 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 predicts that by the end of September, new vehicle inventory will be up 16.69% from the start of August while used vehicle inventory will be down 1.15%. New car prices fell 0.97% in September to an average of $47,961 while used car prices fell 0.83% to $33,957.
As inventory remained relatively low over the first seven months of the year, Reuters reports that automotive ad spend fell 4% year-over-year and was 12.7% lower than in the same period in 2019. This is because despite high demand, there simply were not enough cars available to sell. Now, we are seeing the biggest rise in new vehicle inventory since the first month of the year. This means that things could soon change for auto dealers.
ZeroSum’s Take: What You Need to Know
New vehicle inventory has increased substantially this month, leading to lower prices for both new and used cars.
Here are your key takeaways:
Sell the inventory you have. With more, new inventory being produced, showing strong sales can help win priority allocation from your manufacturer.
Purchase strategically. When used car prices fall, it’s crucial to monitor price trends and buy used cars at the right time.
Price competitively. Ensure you stay competitive in the market by adjusting to price trends.
Originally posted on Auto Dealer Today
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