Tuesday, 27 July 2021 20:11

Cox Automotive Forecast: Tight Supply Puts Brakes on New-Vehicle Sales


...the lack of inventory through August and September but should improve in Q4 as chip orders from manufacturers see more fulfillment.


Demand remains strong in the marketplace supported by improved consumer confidence, a strong stock market and ongoing economic recovery. For consumers, this low-supply, high-demand situation means finding and buying their next vehicle may be a challenge.


Vehicle shoppers may have a hard time finding the exact vehicle they want, in the specific color and trim package desired. And, if they can find a vehicle they want to buy, they may find that the price is non-negotiable as the average transaction price for a new vehicle in June was nearly equal to the manufacturer's suggested retail price.


This combination of hard-to-find vehicles and higher prices is slowing the auto market, and there is little change expected over the next few months.


July 2021 New-Vehicle Sales Forecast Highlights


In July, new light-vehicle sales are forecast to reach 1.33 million units, or nearly 7.8% higher compared to July 2020. When compared to last month, sales are expected to rise more than 35,000 units or 2.8%.


The seasonally adjusted annual rate (SAAR) in July 2021 is estimated to be 15.2 million, above last year's COVID-19-impacted 14.6 million level but a slight decrease from June's inventory-constrained 15.4 million pace, and the slowest pace yet in 2021.


Source: Cox Automotive


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