Cox Automotive and LMC report new-vehicle inventories shrank to just over 915,000 in September and predict further shrinkage as production issues and supply shortages linger.
Automobile sales in September are forecast to slow for the fifth straight month, as tight inventory, high prices take a toll on the industry.
Current inventory levels rest at a 31-day supply for U.S. dealers, reports Cox Automotive subsidiary vAuto.
The slowing auto market will lead Cox Automotive to revise downward its full-year new-vehicle sales forecast.
August will be a fourth consecutive month of slowing sales and looks to be coming in even lower than our forecast of 1.2 million, a 9% decline from August 2020.
The frenzied sales fever that pushed new car sales to record heights is cooling, with demand for pre-owned vehicles returning to more normal levels.
A majority of dealership leaders – approximately 65% – report they plan to increase the total number of employees in the dealership this year.
Automakers reported impressive monthly results, showing increases that ranged from 40% to 70% compared to unit sales during the pandemic.
Wholesale used vehicle prices have increased 37% over the past 20 weeks and used retail prices rose 15% since the end of 2020.
vAuto reports vehicle inventories dropped to 2.24 million vehicles in April, representing a 44-day supply.
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