TYSONS, Va. — The National Automobile Dealers Association (NADA) issued its analysis of U.S. auto sales and the economy for the second quarter of 2022.
“As has been the case in recent months and for the last year, new-light vehicle sales continue to be limited by inventory constraints across all OEMs,” said Patrick Manzi, NADA chief economist. “At the end of the second quarter, inventory levels were up by 8.3% compared to the start of the year but remain down 12.3% year-over-year.”
The second quarter of 2022 closed with new-light vehicle sales in June totaling a SAAR of 13.0 million units, a decline of 16% compared to June 2021; however, sales were up by 2.3% compared to May 2022’s SAAR of 12.7 million units. For the second quarter, new light-vehicle sales averaged a SAAR of 13.4 million units, down 5% from 14.1 million units in the first quarter of 2022.
Alternative-fuel vehicles continued to gain market share with consumers showing increased interest in electrified vehicles, including battery electric, hybrid and plug-in hybrid vehicles, given increasingly high fuel prices. Through the second quarter, battery electric vehicles (BEVs) accounted for 4.8% of sales, hybrid vehicles accounted for 5.9% and plug-in hybrid vehicles (PHEV) accounted for 1.4% of sales. Year to date, franchised dealerships sold more than 106,000 BEVs, 32.5% of all BEVs sold. This number is anticipated to continue rising as more BEVs from traditional auto manufacturers hit dealership showrooms.
In June 2022, the average transaction price for a new light-vehicle was the highest on record at $45,844, an increase of 14.5% compared to June of 2021, according to J.D. Power. Prices have continued to rise as OEMs have prioritized the production of higher trim level, more expensive models while simultaneously reducing incentive spending. According to J.D. Power, average incentive spending per new vehicle was $930 at the end of June 2022, a decrease of 59.4% year-over-year and the second consecutive month below $1,000.
Monthly payments, in line with transaction prices, have also increased and reached $698 in June 2022, an increase of $79 or 12.8% versus June 2021, J.D. Power says. According to Edmunds, 12.7% of consumers who financed a new vehicle in June 2022 had a monthly payment of $1,000 or more, the highest on record and up from 7.3% in June 2021.