OEMs focus on high end vehicles with production limitations.
The US automotive market was down 21.9% in April 2022 year-over-year. Average transaction prices continue to soar as the factory prioritizes high end production in the face of supply issues and capacity limitations.
Adding salt to the wound, historically low new vehicle incentives and higher interest rates will further hinder new vehicle affordability, as the Fed continues with rate increases.
Here are your Car Keys data points for the month:
- April 2022 SAAR: 14.3M units (down 21.9% YoY)
- Average Transaction: $45,232 (up 18.7% YoY)
- Light Trucks: 79% of new vehicle sales (up YoY)
- Incentives: Average per unit $1,034 (all time low)
- Average Payment: $685 (up 15.6% YoY)
Even with the lackluster performance of recent months, NADA maintains its full year estimate of 15.4 million new units sold for 2022.
Follow ESA Car Keys for intel on the automotive market.
For analysis of the March’s auto market, visit NADA: