With customers driving further to find the car they’re looking for, dealers should consider marketing within a larger radius. In 2020, this number rose to 65 miles, and it is expected to continue to increase along with demand. According to Edmunds, prior to the pandemic, consumers were only willing to travel 47 miles for 2019 model year vehicles. With fewer vehicles available on the lot, many consumers have turned to the internet to increase their geography. This will keep new vehicle turn rates and closing ratios on those leads very high. The gap in price between inventory type on some models is thinning and makes sense in those cases to buy new over used.
“I have spoken to multiple dealer principles this week who are starting to see customers pivot into a new vehicle when they came in to see a used vehicle in stock. “As we continue to see below average new car inventory available, I anticipate the price of used cars to remain higher than we typically see,” says Sarah Grajewski, VP of Dealer Success at ZeroSum. While prices may come down some as the year goes on, the used car market will still face high demand. According to the ZeroSum Market First Report, the average used car price rose to $33,464 in February, which is about 1% higher than January and 38.5% higher than a year ago. Right now, most shoppers are paying a premium for their cars. Used car inventory will drive customers to dealer lots However, this will be a slow recovery, and now is the time to put more focus on your used car inventory. This could alleviate some of the upward pressure on new and used car prices, as there will be more new inventory available. While new vehicle inventory is still down about 62% year-over year, inventory levels have increased since December 2021. Although used inventory is still down 3.5% year-over-year, this may signal a turning point for the market. At the beginning of February 2022, used inventory levels rose another 1.7%. According to the ZeroSum Market First Report, after four consecutive months of declining used inventory levels, used vehicle inventory rose over 6% between December 2021 and January 2022. This means that the height of the used car market is now. While the chip shortage and low-inventory climate won’t go away any time soon, we do expect a gradual improvement over the course of the next year. With so many options, it only makes sense to stop by today and enjoy a new vehicle test drive.Īt Orr GM Superstore, we welcome you to check out all that we have to offer up.How long will the high demand and prices last? Read on to find out what dealers can expect for inventory, pricing, and other trends in the used car market in 2022. We often see new and exciting models such as the impressive Chevrolet Silverado, or the exciting GMC Acadia. We are always looking to help you find the model that is the best fit, and with our great options, you can really get just that. We have a great deal of new models available to you. If you are looking to gain some equity, and being long adventures on the road, then we totally suggest you buy a new model. This model hasn't been driven before, and comes backed by a comprehensive limited warranty that you can trust. When you buy a new model, you are getting a model that you can trust. We have plenty of incredible new models, and a long list of benefits to accompany them along the way. When it comes to buying new, we are the place to turn to.