GRAND RAPIDS, Michigan, Aug. 24, 2022 /PRNewswire/ — Zerosome’s first market report is the automotive industry’s premier source for predicting month-end vehicle movement, providing automotive marketers and dealers with critical supply and demand trend data. Zerosum uses predictive modeling to accurately predict new vehicle inventories, price trends and market share.
Zerosome New Vehicle Market First Report data
According to Zerosum data, new car inventories are expected to grow 2.87% by the end of August, while used car inventories could fall 3.48%. At the same time, average new car prices rose 0.10% to $48,429 and used car prices rose 0.53% to $34,242.
Federal Reserve data shows auto production in the United States hit a two-year high in July, returning to pre-pandemic levels. While chip shortages are expected to improve as 2022 progresses, not all automakers are bullish on their year-end performance. BMW has lowered its production forecast for the second half of the year, citing volatile chip and power supplies in Europe and warning that profit targets could not be met. Meanwhile, Mercedes-Benz also reported limitations in vehicle availability but expects higher revenue for 2022 than previously forecast.
Zerosome’s Take: What you need to know
New car inventory is expected to rise to 1,068,688 by the end of the month, a notable change from July when inventory fell. As more new cars become available, Zerosum expects to lower used car prices.
Here are your top takeaways:
- Continue marketing used cars. The average used car price rose to $34,242 in August. Sell as many used cars as possible while prices stay high.
- Watch price trends closely. By the end of the month, the number of new cars could increase by about 3%. The increase in new car inventories is likely to cause used car prices to fall in the coming months and you will need to adjust your pricing strategy accordingly.
- Keep getting EVs. EV registrations have risen while inventories have fallen. Be prepared for demand for electric vehicles by increasing your available inventory of electric and hybrid cars.
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Zerosum is a leader in software, marketing and data. Powered by its MarketAI SaaS platform, ZeroSum simplifies and modernizes automotive marketing by using artificial intelligence, data and the ability to scale to win new customers. ZeroSum is the first and only company to match real-time consumer demand with automotive data. Visit www.zerosum.ai for more information.
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