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Light trucks accounted for 79.8% of all light-vehicle sales in January 2022, with pickups and SUVs gaining market share while the popular crossover segment was flat year over year, according to the National Automobile Dealers Association. After surpassing $45,000 for the first time in December 2022, the average transaction price is expected to decrease slightly, but should still be a record for the month of January.
According to J.D. Power, the average transaction price for a new light vehicle in January 2022 is expected to reach $44,905. High transaction prices continue to be supported by strong demand and very low OEM discounting. Average incentive spending per unit in January 2022 should total just $1,319, down by $2,163 from January 2021, J.D. Power says. Continued high demand for used vehicles has increased consumers’ equity in their trades. J.D. Power expects the average consumer trade-in equity to be up by 88% year over year for January 2022.
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Automakers “continued to prioritize retail deliveries over fleet deliveries. After accounting for only 12.5% of light-vehicle sales in 2021, fleet sales are expected to be just 11% of sales in January. Inventory levels at the end of January 2022 are expected to show a slight increase compared with December 2021, but January sales were still held back by limited inventory. Severe winter storms at the end of January and the Omicron variant of COVID-19 also likely limited sales somewhat,” said Patrick Manzi, NADA Chief Economist.
Manzi also predicted that sales for the balance of 2022 will continue to be limited by vehicle production as automakers work to build back inventories amid the ongoing semiconductor microchip shortage. We forecast that light-vehicle sales will total 15.4 million units in 2022.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
NADA – Light Trucks Dominating Market
Click to Enlarge.
Light trucks accounted for 79.8% of all light-vehicle sales in January 2022, with pickups and SUVs gaining market share while the popular crossover segment was flat year over year, according to the National Automobile Dealers Association. After surpassing $45,000 for the first time in December 2022, the average transaction price is expected to decrease slightly, but should still be a record for the month of January.
According to J.D. Power, the average transaction price for a new light vehicle in January 2022 is expected to reach $44,905. High transaction prices continue to be supported by strong demand and very low OEM discounting. Average incentive spending per unit in January 2022 should total just $1,319, down by $2,163 from January 2021, J.D. Power says. Continued high demand for used vehicles has increased consumers’ equity in their trades. J.D. Power expects the average consumer trade-in equity to be up by 88% year over year for January 2022.
Click to Enlarge.
Automakers “continued to prioritize retail deliveries over fleet deliveries. After accounting for only 12.5% of light-vehicle sales in 2021, fleet sales are expected to be just 11% of sales in January. Inventory levels at the end of January 2022 are expected to show a slight increase compared with December 2021, but January sales were still held back by limited inventory. Severe winter storms at the end of January and the Omicron variant of COVID-19 also likely limited sales somewhat,” said Patrick Manzi, NADA Chief Economist.
Manzi also predicted that sales for the balance of 2022 will continue to be limited by vehicle production as automakers work to build back inventories amid the ongoing semiconductor microchip shortage. We forecast that light-vehicle sales will total 15.4 million units in 2022.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.