Pub 4 2022 Issue 3

California Auto Outlook California Used Vehicle Market Declined 13.1 Percent During First Nine Months of 2022 Percent Change in New and Used Vehicle Registrations - YTD ‘22 thru Sept. vs. YTD ‘21 TWO KEY TRENDS IN USED VEHICLE MARKET Data Source: AutoCount data from Experian. CALIFORNIA USED VEHICLE MARKET -16.1% -13.1% -23.6% -9.1% 4.8% New vehicles All used vehicles 3-year-old or newer used vehicles 4- to 6-year-old used vehicles 7- to 10-year-old used vehicles 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 4-yrs.-old or newer 5- to 8-yrs.-old USED VEHICLE BRAND MARKET SHARE Brand Market Share for Top 15 Selling Brands, by Vehicle Age (YTD ‘22 thru September) Ford market share was higher for 5- to 8-year-old vehicles. Data Source: AutoCount data from Experian. The graph below shows used light vehicle registrations by brand for two age categories: vehicles newer than four years old, and vehicles five to eight years old. Brands are positioned from left to right based on market share for four year old or newer vehicles. Toyota was the best-selling brand for 4-year-old or newer vehicles. Toyota is Top Seller in California Used Vehicle Market 01. 02. Used vehicle registrations in the state declined 13.1 percent during the first nine months of this year versus a year earlier, a smaller drop than the 16.1 percent fall in the new vehicle market. As the year has progressed, strong headwinds have emerged that have impacted used vehicle sales. All of these headwinds are related to vehicle supplies and pricing. Below average new vehicle sales during the past two years have reduced the availability of newer used cars and have resulted in fewer trade ins. In addition, escalating used vehicle prices in 2021 and the first half of this year, combined with a weakening economy have cooled demand. Used vehicle prices have softened over the past several months, however, which should provide a mild boost.

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