New car sales continued declining through the first half of 2022 as a result of the microchip shortage, according to a recent Autoweek article. In July, another auto industry news source, Automotive News, predicted new car sales would be down more than 19 percent compared with the first half of 2021. The publication also reported that General Motors took first place in new car sales for Q2.
A July article from TheTruthAboutCars.com reported a year-to-date approximation of 6.57 million new vehicles sold in the US, down 18.5 percent from just over 8 million new vehicles sold in July of 2021. Part of this can be attributed to June's new vehicle inventory starting out at 1.13 million (on dealer lots and in transit), down by 70 percent from the same period in 2019, according to Cox Automotive.
The lack of new vehicle inventory has caused many eager car buyers to pre-order their vehicle and wait months for it to be delivered. Auto industry news sources also report that this shortage has led to increased demand, as new car buyers are still paying higher prices on new car sales to secure their purchase.
Until new vehicle supply increases (which is yet to be determined), car dealers should continue focusing on the factors that are in their control, like keeping customers updated as more vehicles come onto your lot and focusing on ways to enhance your customer experience. Offering quality financing options for your customers is one way to ensure your dealership is catering to your customers’ needs.
If you’re a franchise, independent, or buy here pay here dealership looking to increase both used and new car sales and make more money, Credit Acceptance can help. Last year, we paid enrolled dealers nearly $4 billion in total funding and more than $185 million in Portfolio Profit. If your dealership is interested in enrolling in the Credit Acceptance program, fill out the form on our website to learn more about becoming an enrolled dealer!
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