Tight inventories are colliding with strong consumer demand that continues to maintain prices, and profit per unit sold, at record levels. Average transaction prices are expected to reach a November record of $44,043, a sixth consecutive month above $40,000, and 18.1% higher than November 2020 when prices were $37,284.
“The lack of vehicles in inventory this month is particularly significant as the typical Black Friday sales surge will be difficult to support. Nevertheless, strong underlying demand for new vehicles, coupled with rising pent-up demand due to the inventory shortage, is sustaining record transaction prices and profits for each unit sold,” King noted.
Total retailer profit per unit with gross profit and finance & insurance income is on pace to reach a record $5,164, an increase of $3,060 from a year ago. This is the second consecutive month above $5,000.
