If you’ve been shopping for a vehicle this past year or two, you’ve probably seen the empty lots at the dealerships. Whether you’re shopping at a used car dealer or a new car dealership, one question remains, will dealers see a rise in new car inventory in 2022?
Fortunately, for those in the market for a new vehicle, you can expect those empty lots to start filling up again. Unfortunately, it may not be as quickly as you’d like. Here’s what you need to know about this year’s new car inventory.
What’s Caused the Halt in New Vehicle Production?
During the pandemic, car dealerships saw a near halt in new vehicle distribution. A combination of factors including supply chain issues, factories that were on pause because of global lockdowns, and delivery issues from ports to dealerships all resulted in limited access to new vehicles.
Consumers who were able to reserve new vehicles at their local dealerships were met with long wait times that extended well over several months.
When Will the New Vehicle Market Stabilize?
As the economy continues to push through the pandemic and glimpses of normal seem to be on the horizon, the new vehicle market is starting to see its first glimmers of hope as well. As of May 2, 2022, the number of available new vehicles throughout the U.S. stood at 1.13 million, just a smidge above the 1.10 million available new vehicles in March.
Still, it’s important to note that the overall availability of new vehicles to American consumers is still below the norm. At the end of April, new vehicle supply was down 40% from the same time last year.
This shortage of new vehicles was largely fueled by the global semiconductor shortage. Semiconductor chips are used in virtually every aspect of a vehicle. From the radio to the engine, to safety systems and everything in between, without semiconductor chips, new vehicles weren’t being built in quantities as they were in years past.
The good news is, as production continues to ramp up, supply chain issues begin to resolve, and manufacturing and distribution continue their upward trajectory, dealerships should expect to see a rise in new inventory.
It’s important to note however that experts expect this process to take a bit of time. Consumers should expect more new vehicles to be available by the close of 2022 and through 2023.
Be Prepared for Higher Prices
As consumers continue planning their vehicle purchases, they should be prepared for higher prices.
The cost of a new vehicle has jumped up quite a bit over the past couple of years. Kelley Blue Book details that 2019 saw the price of a new vehicle rise to $1,800. 2020 kept up the trend with the price of a new vehicle rising again just over $3301, and yet again a whopping $6220 in 2020. Today, the cost for a new vehicle tops $47,000 as compared to $37,000 in January 2019.
As dealerships prepare to see an uptick of available new vehicles this year, consumers
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