Topic: used vehicles
The unrelenting inventory maelstrom continued to spin in September as persistent production delays coupled with resilient consumer demand further impacted vehicle availably across the board.
We saw yet another decline for the new Vehicle Availability Index in September, with a reading of 20.8, a decline of 10.9% compared to August and down 69.1% YoY. The continued reduction in new inventory is pulling down sales and causing a cutback in full year forecasts for both 2021 and 2022. One silver lining is the strong demand for consumers for new vehicles, evidenced by their willingness to pay historically high prices with reduced incentives and financing. However, this comes as a double-edged sword, as high demand might continue to keep new inventory levels low as production slowly comes back.
In the August edition of the CarGurus Vehicle Availability Index & Insights Report, Director of Industry Insights & Analytics Kevin Roberts provides a glimpse at the latest trends impacting inventory and pricing, which he’ll dive into in-depth at Navigate.
August had been pegged as a potential turning point for the ongoing inventory shortage – however, as has been quite common on this journey, the expectation was accurate but not in the ways that were anticipated.
For what feels like the umpteenth time, new inventory levels dropped further with the new Vehicle Availability Index reading for August coming in at 23.3, a drop of 13.4% from July and down over 64% from last year. There was hope that August could become an inflection point – however, we continued to see further plant shutdowns due to a lack of silicon, and now the prospects for new sales for the rest of the year continue to dim with the reality that tight inventory will last well into 2022.