N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E 4 | 2 0 2 1 10 new jersey auto retailer NADA’s Chief Economist, Patrick Manzi, recently posted a story about how the ongoing inventory shortage is impacting vehicle sales. According to NADA’s Chief Economist, Patrick Manzi, new light-vehicle sales in November came in below expectations, with a SAAR of 12.9 million units, down 19% from November 2020. Despite November’s month-to-month decline, sales through the first 11 months of the year are up by 7% compared with the same period in 2020. (In New Jersey, sales are up 17.1% through the first 11 months of the year, compared to 2020.) While November began with a slight increase in inventory levels in some parts of the country, limited vehicle availability keeps sales well below current demand. Month-end inventory in November 2021 was up by 2.9% from October 2021, but inventory could again fall a bit during the final month of the year. According to Patrick Manzi, tight vehicle inventories will continue to limit sales somewhat in the early months of 2022, but the inventory drag on sales should ease throughout the year as inventories build slowly and steadily. When inventory does arrive, it seems to move off the dealership lot at a record pace. The average number of days a new vehicle sits on the lot, according to J.D. Power, fell to a record low of 19 days in November, down from 48 days in November 2020. Average incentive spending per unit is expected to increase slightly to $1,612 in November from October’s record low of $1,598. With lower discounts and high demand, average transaction prices should reach a November record of just over $44,000, according to J.D. Power. Average trade-in values, which are up 83% year over year, and new-vehicle finance rates, which are down from a year ago, have helped consumers deal with those rising prices to some degree. Given the ongoing microchip shortage and its expected impact on vehicle deliveries during the final month of the year, NADA has lowered expectations for total light-vehicle sales in 2021, estimating a total of 14.9 million units sold for the year. WHO SHOULD ATTEND NADA SHOW 2022? The NADA Show is not just for dealers. The world-renowned annual auto industry event provides the education, business solutions and networking opportunities to help managers drive success in each dealership department — and accelerate their careers. Managers of all kinds attend the NADA Show to find real solutions for issues they face in every department, including employee hiring, retention and training, digital and traditional NADA Director’s MESSAGE | BY RICHARD A. DESILVA, SR. Limited Vehicle Availability Continues to Impact Sales
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