New vehicle buyers should expect to wait six months to a year for prices to drop, according to a new report analyzing why the new-car shortage happened and when it will end.
And experts predict that new-car inventory may not return to prepandemic levels until 2023, per AutoInsurance.com.
With fewer new cars and high demand, the average price for new cars has increased, according to data from the National Automobile Dealers Association.
From 2020 to 2021, the average cost of new cars in the U.S. increased by 9%, to $42,379. In contrast, from 2016 to 2019, prices rose by only 6%, per AutoInsurance.com.
Since August 2021, cars have sold above manufacturers’ suggested retail prices on average, according to data from Edmunds.com.
Used cars don’t offer the savings they used to. A 1- to 2-year-old used car costs about as much as as the same-model new car in a dealer’s lot.
In the past year, average prices for new cars have climbed 10%, according to Edmunds.com. The price for all used cars is 7% higher, and prices for 9-year-old used cars have spiked 21%.
In 2022 so far, the number of new vehicles sold in the U.S. has decreased by 11%, according to J.D. Power. This was true for every manufacturer, with Nissan and General Motors taking the biggest loss in the number of vehicles sold in 2021.
The upside remains for new-vehicle dealers. From 2020 to 2021, new-vehicle dealerships in the U.S. made 17% more sales for a total of $1.184 billion, despite selling 18% fewer cars.