Edmunds: First Quarter Sales Dip

By Staff Writer March 31, 2021 184
Edmunds analysts anticipate that the ATP for new vehicles will climb to $40,320 in Q1 Edmunds analysts anticipate that the ATP for new vehicles will climb to $40,320 in Q1

The car shopping experts at Edmunds forecast that 3,818,503 new cars and trucks will be sold in the U.S. in the first quarter of 2021. This is an 8.6 percent decrease in sales from the fourth quarter of last year but an 8.9 percent increase in sales from Q1 of 2020.

“First-quarter sales are starting off on a strong note. The fact that we’re surpassing last year’s numbers when the pandemic didn’t even hit the industry until the last two weeks of March 2020 is no small feat,”

Jessica Caldwell, Edmunds’ executive director of insights

said Jessica Caldwell, Edmunds’ executive director of insights. “Seeing sales continue at such a strong rate despite all of the challenges presented by COVID-19 is an ongoing testament to the strength of the automotive industry and the confidence of the American consumer.”

Edmunds experts note that limited inventory created by pandemic-related production issues and chipset shortages continue to present challenges for the industry. According to Edmunds days-to-turn (DTT) data, vehicles are selling at a much faster pace because inventory is in such short supply: In March 2021, 17 percent of all new vehicles sold within five days of arriving on a dealer lot, compared to 14 percent last year. Edmunds analysts note that older new vehicle inventory is harder to come by as well: Edmunds data reveals that just one in five new vehicles sits on the lot for more than 100 days before selling, compared to nearly one in three last year.

“Some consumers seem to be catching on to the microchip shortage and are responding by making more aggressive purchasing decisions,” said Caldwell.

Despite the ongoing challenge of inventory shortages, Edmunds notes that a rise in the average transaction prices (ATP) in the first quarter is a positive trend in terms of profitability for automakers and dealers. Edmunds analysts anticipate that the ATP for new vehicles will climb to $40,320 in Q1, the highest Edmunds has on record for any quarter.

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Last modified on Monday, 05 April 2021 13:55