The consistency of new vehicle inventory levels over the last six months suggests that the industry is readjusting to a ‘new normal’ level of inventory while increasing vehicle prices indicate low inventory levels continue to generate strong gross for dealers and profit for OEMs.   -  IMAGE: ZeroSum

The consistency of new vehicle inventory levels over the last six months suggests that the industry is readjusting to a ‘new normal’ level of inventory while increasing vehicle prices indicate low inventory levels continue to generate strong gross for dealers and profit for OEMs. 

IMAGE: ZeroSum

GRAND RAPIDS, Mich. – The ZeroSum Market First Report  is the automotive industry’s first source to predict month-end vehicle movement, providing vital supply and demand trend data to automotive marketers and dealers. ZeroSum uses predictive modeling to accurately estimate new vehicle inventory, pricing trends, and market share. 

ZeroSum’s Take: What You Need to Know 

The consistency of new vehicle inventory levels over the last six months suggests that the industry is readjusting to a ‘new normal’ level of inventory while increasing vehicle prices indicate low inventory levels continue to generate strong gross for dealers and profit for OEMs. The conflict in Ukraine has caused European OEMs to revise production forecasts, while several companies, including VW, have announced shifts in production from Europe to North America and China. 

Ford’s announcement of splitting their business into Ford Blue and Ford Electric suggests a willingness of OEMs to reimagine business models, with other OEMs likely to follow suit. The launch of new electric vehicles is likely to accelerate as OEMs look to capitalize on consumer behavior shifts due to inflation and fuel prices.  

Here are your key takeaways: 

April new and used inventory is down while prices continue to rise. There are currently 1% fewer new cars and 2% fewer used cars on the ground than at the start of the month. New vehicle prices have risen 1%, and average used car prices are now up $8,500 YOY.

  1. Challenge brand loyalty. Dealers should look outside of their own brand for opportunities to steal market share from nearby OEM franchises in high opportunity segments. 
  2. Market the car, not the price. Due to rising prices, dealers should focus marketing messaging on available inventory vs. prices or offers, to win additional shoppers. 
  3. Market your whole inventory. Consumers are likely to consider both new and used vehicles due to limited availability and soaring prices.

Click here to read the report.

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