Tag Archives: nada

US Light Vehicles Sales in January 2023 Weak at 1 Million

The usual problems remain – record high transaction prices, economic uncertainty, the Federal Reserve’s determination to send the economy into a recession via its ongoing interest rate increases, skimpy inventory caused by supply chain disruptions for some major automakers, notably Ford and Toyota – all make for a rerun of the flop show Pandemic Blues. So good luck reopening that show in 2023 with the same cast and plot. Continue reading

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Mixed Economic Signals in October US Vehicle Sales

Nonetheless, automaker discounts persist at record lows. Average incentive spending per unit per Power is forecast to total $882, which is down 44.7% from October 2021. This is the sixth straight month below $1000. The question is when do vehicles become un-affordable as the Federal Reserve is deliberately sending the economy into a recession to fight inflation, which the Fed caused by years of of cheap monetary policy that mostly benefited the rich. In a mass market for automobiles, the rich can’t buy all the vehicles as production resumes to pre-pandemic rates that were running at 17 million vehicles annually.  Continue reading

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NADA Cautious on 2022 US Light Vehicle Sales Outlook

However, September 2021 was the weakest since May 2020, because of pandemic induced supply chain disruptions and parts shortages, which resulted in  the lowest saleable inventory for more than three decades. Continue reading

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Demand Greater than Supply during June in US

“The shortage of microchips continues to limit vehicle production, but it’s not the only hurdle. Numerous other supply chain disruptions have limited OEM production, and many OEMs continue to nearly complete their vehicles and park them while they await chips. Unfortunately, these supply chain issues will continue to limit new-vehicle production, inventory and sales levels for the rest of the year,” said Patrick Manzi, chief economist of the National Automobile Dealers Association.   Continue reading

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US May Auto Sales – Record Prices as Sales Plunge -29%

“Headwinds continue to stack against a sustained market recovery and stability in vehicle supply. We expect the economy and auto market to remain plagued by volatility for the foreseeable future. Given the elevated risk, it is plausible for 2022 to turn to negative from the 2021 level, with volume down to 14.7 million units. Continue reading

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US April Sales Up 6.5%. SAAR Down -21.9% YoY

“However, April 2022’s SAAR was down by 21.9% compared to the stellar sales pace seen in April of 2021 which was driven by strong consumer demand and enough inventory available to meet that demand. April 2021 was one of the last sales months before inventory began to decline significantly and limit the sales pace. We don’t expect that April’s month-end inventory level will change much from March’s level of 1.23 million units as the industry is still unable to produce enough vehicles to meet current demand, let alone restock dealer lots,” said Patrick Manzi, NADA’s Chief Economist. Continue reading

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NADA – Light Trucks Dominating Market

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. Continue reading

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2021 Q2 US Sales – Light-Trucks, Crossovers, SUVs Rule

Real GDP in Q2 of 2021 is expected to grow by 8.6% on an annualized basis. The U.S. economy is predicted to return to its pre-COVID Trump Administration disaster level of ~ $19.2 trillion by the time final data is collected. For all of 2021, real GDP is expected to increase by around 7%. Initial jobless claims continue to fall each week and are headed toward pre-pandemic levels. About 14.7 million Americans continue to receive at least some type of unemployment benefits, down 54% compared to the same period in 2020 when Trump ruled. Continue reading

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Inventory Deficit Hurts June US Vehicle Sales. Again

With too much demand chasing too little supply, it’s not surprising many vehicles sold at or above MSRP and automakers have slashed incentive spending. According to J.D. Power, in mid-June 75% of vehicles sold for MSRP or above, which is up from 67% in May 2021 and way higher from the pre-COVID average of 36%. AutoInformed thinks that an affordability crisis is starting to emerge, as the Biden Administration economic boom continues. Continue reading

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May US Light Vehicle Sales – Start of an Affordability Slump?

But there is more going on here, AutoInformed opines, given current market conditions. While automakers and the business press have been chasing the semi-conductor shortage, many claim May’s drop in sales are the effects of a supply and demand imbalance. However, the vehicle mix of highly-equipped vehicles, plentiful low-interest-rate money, and the headlong rush into electric vehicles – priced above an average working person’s ability to carry the loan – are starting to make light vehicles unaffordable to the working and middle classes. Continue reading

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US March Vehicle Sales Rebound. Beating the COVID Reaper?

March 2021 sales were likely increased by delayed sales caused by harsh February winter weather. Then there’s the increase from stimulus checks following the passage of the Biden administration’s COVID-19 relief bill, which no Republican voted for. Continue reading

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NADA Predicts Q2 2019 US Auto Sales Will be Down Again

“Sales have declined relative to 2018 each month this year, but overall, not more than we expected,” said Patrick Manzi, senior economist NADA. Transaction prices on both cars and light trucks continued to rise and set new records. According to the latest NADA Average Dealership Financial Profile Series from April 2019, the average new-vehicle transaction price was $36,642, up 3.3% compared to this time last year. Continue reading

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NADA 2019 Light Vehicle Sales Projected at 16.8 Million

Based on a strong November, new-vehicle sales are expected to reach 17 million units in 2018, which would mark the fourth straight year of U.S. auto sales above 17 million units. (see AutoInformed: Auto Loans – Payments Higher, Subprime Lending Lower. The Federal Reserve Board is likely to raise rates in December 2018. More rate increases are likely during the early half of 2019 and then rates are expected to hold.) Continue reading

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Beware of Self Interest in Mobility Promotion says NADA

“I get it. You can’t go to an automotive or a tech conference these days without hearing about the end of personal vehicle ownership,” he said. “But I’m asking you: Question the hype, ask for proof, and find out what they’re not telling you. The future will work itself out regardless. I just want us to be informed in the meantime.” Continue reading

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Gutting Consumer Finance Protection Bureau Hurts Auto Biz

As a congressman, Mick Mulvaney sponsored legislation to abolish the CFPB. A White House budget proposal cuts funding for the CFPB by ~$150 million – 25% of its total budget. Mulvaney has already frozen hiring and put a temporary hold on payments to victims of illegal banking practices. Three to 5 million American households turn to payday loan companies whose storefronts in working class neighborhoods outnumber McDonalds and Starbucks. Continue reading

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