Consumers in the market for a new vehicle will likely have a harder time finding what they want at an affordable price right now due to severe supply shortages affecting the automotive industry.
According to the car shopping experts at Edmunds, new vehicle inventory on sale at dealerships nationwide was down by 36% in March compared to a year ago, and prices are rising for both new and used vehicles as a result.
Edmunds analysts forecast the average transaction price (ATP) for new vehicles will climb to $40,563 in March compared to $38,601 a year ago; the ATP for used vehicles is expected to hit $22,663 compared to $20,273 last year.
"The chipset shortage has snowballed into a bigger crisis for the automotive industry," said Jessica Caldwell, Edmunds' executive director of insights. "Major auto manufacturing plants are implementing temporary closures, and we're seeing the industry being hit hard on both sides: Retail customers are being offered fewer choices and paying higher prices, while fleet customers are likely seeing their orders delayed as auto manufacturers shift their focus to serving consumers."
Edmunds analysts note full-size trucks and large SUVs are among the vehicle categories most disproportionately affected by these shortages.
According to Edmunds data, full-size truck inventory was down by 60% in March compared to a year ago; the average transaction price for new full-size trucks is expected to climb to $54,763 compared to $51,164 a year ago, while the average transaction price for used full-size trucks is expected to climb to $34,445 compared to $28,156 a year ago.
Large SUV inventory decreased 56% in March compared to last year; the average transaction price for new large SUVs is forecasted to climb to $67,542 compared to $62,620 in March 2020, and the average transaction price for used large SUVs is expected to climb to $35,035 compared to $31,232 a year ago.
"Full-size trucks and large SUVs have been a bright spot for automakers throughout the pandemic because of their profitability, but unsurprisingly these high-demand vehicles have also been the quickest to fly off the lot," said Caldwell. "Unfortunately, these supply shortages translate to...