The factory flow of new cars finally appears to be picking up, with dealers promising improved inventories for 2023 and beyond.
But used cars and trucks may be a different story.
From 2020 to 2022, US retailers sold 43.5 million new vehicles. According to the Automotive News Research & Data Center, this was his 8.2 million new car drop from sales over the past three years.
So that was the 8.2 million cars that didn’t enter the pipeline to become used cars in a few years. The 8.2 million units will never be released from lease and become Glossy Certified Pre-Owned. 8.2 million vehicles never auctioned, never traded in, old enough to need brake work, crash repairs, new fuel pumps, new tires, even oil changes not.
because they don’t exist.
The industry has recently focused on the pressing task of getting new cars and trucks into the hands of consumers. The problem quickly boils down to getting a fresh used car into the hands of a retailer. And the competition for what is available is sure to intensify.
But used cars are a far more important factor in dealer profits than they were ten years ago. One of the things we can expect in the future is for retailers to find new ways to stay competitive with what’s available.