By: Klon Perez Updated 09 Apr 2022, 8: 39 am EDT
Given the restrictions of the levels of existence of new vehicles, the dealers did not have a good 2021. Although 2022 might bring a slight improvement in car manufacturing, the industry at best will not improve until at least 2023 , according to the National Association of Vehicle Dealers.
But the Covid pandemic-19 and the scarcity of microchips have even made vendors today more resourceful and environmentally friendly in the way they do business. From diversifying the way they supply used cars to improving sales productivity, NADA Chief Economist Patrick Manzi told Automotive News.
These are some of the conclusions of the “NADA information” report 2021 of membership, an annual monetary profile of new franchised dealers in United States. The report highlights stock ranges, total new and used vehicle sales, employment and payroll trends, among a variety of other metrics.
According to the National Association of Vehicle dealers, the biggest issue has been stocking and being able to help customers find cars that fit their needs.
That will be one of the main concerns this year, since everything I have seen so far tells me that we will face this new car stock market crisis, and maybe even used cars, to some extent, effectively in 2023
Patrick Manzi, Economist of the Association National Vehicle Dealers
At the end of 2021, the existence levels reached 1.12 million cars, a drop of the 59 % with respect to a 2021 clearly affected by the pandemic.
Stock shortages gave dealers a pricing power not seen in many years, so they were able to sell new and used cars a little more expensively. This greatly increased his final earnings. Furthermore, as they had fewer new cars, dealers intensified efforts to supply and provide used cars. Approximately one in four used cars from dealerships were purchased at auctions in 2021, in front of 27.2 of 2019. At the same time, dealers purchased 8% of used cars from street purchases in 2020, in 2019 was only 5%. Dealerships are also looking to sell more effectively with fewer workers. Total employment in this type of company fell 2.1% in 2021, which in real numbers is 1,055,400 fewer people in the industry.
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