[From Automotive News] NADA data shows that while new- and used-vehicle sales are down through the first half of the year, demand for both sales and service remains high.
2022 is shaping up to be another good year for the nation's new-vehicle retailers, according to dealership financial data from the National Automobile Dealers Association through the first half of the year.
New-vehicle production remains constrained and likely will stay that way for the rest of the year, if not into 2023, Patrick Manzi, NADA's chief economist, told Automotive News following the release of the NADA Data midyear report. The report offers data on sales, service and other financial trends at franchised dealerships through June.
But consumer demand for new and used vehicles remains strong, and parts and service operations also are performing well, Manzi said.
New-vehicle prices should remain elevated for the rest of the year, he said, in part because of the combination of automakers prioritizing higher-trim models and lower incentive spending. Average incentive spending per vehicle declined every month to a record low of less than $1,000 in June, according to the midyear report. That's down from a record high of more than $4,700 in April 2020.
Used-vehicle pricing remains high but may begin to moderate as wholesale prices have begun to drop in recent months, Manzi said. That could cause some dealers to adjust how much they pay to acquire used vehicles and how they price them, he added.
Read the full Automotive News story here.
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