The supply of new vehicles fell in September to new lows – less than a million vehicles were available for sale, according to a Cox Automotive analysis of available vAuto inventory data, while prices for new vehicles hit a new record last month, marking the sixth record month and surpassing $ 45,000 for the first time, according to a new report from Kelley Blue Book. The results were summarized in separate press releases on September 13 and 14.

September 2021 vehicle inventory table, by brand.

Graphic: Cox Automobile

Inventory compression

The total supply of unsold new vehicles available in the United States stood at 915,089 vehicles at the end of September. This was down from 1.01 million vehicles a month earlier. Inventories towards the end of September were 63% lower than a year ago, according to an analysis by Cox Automotive. In gross figures, the supply of vehicles under one million compares to nearly 2.5 million in 2020 and 3.5 million in 2019.

The supply of unsold new vehicle days was 30 days at the October opening. The number of days has fluctuated between 29 and 31 since mid-July. Yet the supply of days in September was 47% lower than the same period in 2020.

Cox Automotive Days Offer is based on the Daily Selling Rate for the most recent 30-day period. New vehicle sales have been slowing down since June. September’s sales pace, or seasonally adjusted annual rate (SAAR), fell to 12.1 million, from more than 16 million and 17 million in 2020 and 2019, respectively. The pace of sales has slowed since June.

Toyota and Honda had the lowest bid

Toyota and Honda, both of which made drastic production cuts, had the lowest inventory, each with 17 days of supply. Lexus had the lowest bid among luxury brands at 19 days. Most of Toyota’s volume models, like the RAV4, Camry, Corolla, Highlander, Prius, and Tacoma, had less than 20 days of supply. Lexus’ volume model, the RX sport utility, only had a 10-day supply.

Despite lower inventories, Toyota still outperformed General Motors for the second consecutive quarter. Some analysts predict that Toyota will overtake GM for the year and possibly in 2022.

Likewise, Honda only had 17 days of supply. Its volume models that make up the bulk of the brand’s sales – Accord, Civic and CR-V – had teenage days of supply. The best-selling CR-V utility had less than 10 days of supply.

Maybe for Toyota and Lexus, the worst is behind. The automaker plans to resume full production and make up for up to a third of the lost production. Toyota had reduced its production target for the remainder of its fiscal year, which ends March 31, 2022, from 300,000 vehicles to 9 million units worldwide. It provides for 97,000 additional vehicles between December and the end of March by scheduling weekend shifts. COVID-19 infection rates in Southeast Asia, where the bottlenecks have occurred, are declining and concerns about production risks are easing.

Kia only had a 20-day supply with the new Carnival minivan and the popular Telluride SUV having a teen-day supply. Subaru had a 22-day supply, while its best-selling Forester and Outback each had only a 14-day supply.

The GMC and Chevrolet brands were at the lower end of the inventory scale with 25 and 26 day supply, respectively. The worst may also be behind GM. The automaker has confirmed dates to restart production at several factories that make various models in North America after months of downtime. That would mean almost all of its factories would be up and running at full production in November.

Average vehicle transaction prices, up to September 2021. - Chart: Cox Automotive

Average vehicle transaction prices, until September 2021.

Graphic: Cox Automobile

High vehicle prices

At $ 45,031, the average transaction price (ATP) for a new vehicle increased 12.1% (or $ 4,872) from a year ago in September 2020 and 3.7% (or 1 $ 613) compared to August 2021.

Record prices accompanied the fifth consecutive month of slowing sales. Total sales last month were just 1,012,797, down 7.3% month over month and one of the lowest volumes in the past decade. In addition to supply dynamics, the vehicle lineup shifted in September from low-cost sedans, compacts and entry-level segments to more expensive vans, SUVs and the luxury market.

“The record prices in September are mainly due to the mix of vehicles sold,” said Kayla Reynolds, analyst for Cox Automotive. “Mid-size SUV sales jumped in September compared to August, and the share of full-size pickup trucks also increased. Sales of low-cost compact and midsize cars, which dominated during the summer, faltered in September. As long as stocks of new vehicles remain tight, we believe prices will remain high. “

Incentive spending fell in September to a new record, falling to 5.2% of ATP last month, down from 5.6% in August 2021 and well below the 10.0% of l ‘ATP registered in September 2020. Porsche, Land Rover, Genesis, Subaru and Toyota had among the lowest incentive spend last month, all 3% of ATP or less. In contrast, Alfa Romeo, Buick, Fiat and Infiniti each had incentive levels above 10% ATP.

ATPs in September continued to be pulled up by strong sales of luxury vehicles. Luxury sales accounted for 16.6% of total market sales, up from 15.1% in September 2020. The luxury share in September was among the highest in the past decade, and luxury buyers paid on average $ 60,845 for a new vehicle last month.

In addition, many luxury brands including Acura, Cadillac, Genesis and Mercedes-Benz have achieved ATP gains of over 20%. Cadillac, for example, saw its ATPs increase by more than 32% last month, reaching $ 81,939. Consumers continue to pay nearly $ 100,000 for a new Cadillac Escalade. More than 3,500 were sold in September 2021, a jump of more than 50% from August 2021.

Originally posted on Vehicle Remarketing

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