Analysis: The actions of the UAW will reverberate through the larger auto business, but nowhere near what was experienced in April 2020. Sales into fleet could suffer in 4Q if a strike is wide and persists. Rental car companies may return to the used car market like they did in 2021 and 2022, driving prices higher.
Difficulty sourcing replacement units continues to be an ongoing pain point. Likewise fleet costs are up. Compared to CY-2020 vehicle acquisitions costs are approximately 19% higher while maintenance and fuel increased 25-40%.
Rising new-car sales in Europe and Australia appear to indicate the automotive industry is recovering supply shortages caused by the COVID pandemic.
All major market vehicle segments saw seasonally adjusted prices that were lower year over year in the first half of June.
Days' supply increased due to a slight weakening in sales toward month-end. Despite a decline in the average listing price, it remained above $47,000.
Mid-Month Update: The Manheim Used Vehicle Value Index was down 7% compared to the full month of May 2022.
Post-pandemic pent-up demand is moving into the automotive market. Strong sales growth into fleets strengthened April numbers.
For the second month in a row, average transaction prices undercut manufacturer's suggested retail prices, reversing a prior 20-month trend.
With mandates on the horizon that could phase out gas vehicles in government fleets, OEMs are working toward aggressive goals in the EV arena.
Analysis: Consumers are repairing vehicles and holding them longer to avoid historically high used-car prices. The real question is: How long will used inventory remain tight and prices above normal?
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