With Summer now in full swing, the month of July can often be a big one for car dealerships. Fourth of July is just around the corner, the weather is really heating up, and many drivers are looking for new vehicles. But with that said, there are several important facts, figures, and updates within the industry that car dealers should keep in mind when going into the month of July; here are the most significant.
Luxury Car Prices Are Dropping, Non-Luxury Remains Up
One recent update over the past couple of months is how prices of new vehicles have started dropping, if only slightly. Among some Kelly Blue Book findings, it was found that luxury buyers in particular paid an average of $64,379 for new vehicles, which was $511 month over month lower but still over $1,000 above sticker price.
On the other hand, new non-luxury cars still remain high and continue rising. The average price of a new non-luxury vehicle in May was $43,338, which was up $709 from the previous month. Non-luxury vehicle shoppers paid $1,030 above sticker price on average, with consumers paying more than the MSRP every month of 2022. Compared to last year, non-luxury vehicles sold for more than $400 under the MSRP.
EV Prices Are Lowering as More Affordable Options Become Available
One surprising statistic found from KBB was that the average price paid for a new electric vehicle dropped again, as lower-priced models have begun entering the market. Models such as the Chevrolet Bolt–which has an MSRP of just over $30,000–and the Kia EV6 have helped to offset the higher prices of more luxury EVs already on the market. But even with the new affordable models becoming available, the average price of a new EV remains high, at over $64,000.
Thanks to these more affordable options becoming available and sky-high gasoline prices, it’s likely that electric cars will only become more popular in the coming months – so it’s therefore important for dealerships to better train their employees to be more knowledgeable about EV cars and anticipate selling them to more customers than ever before.
Low Supplies Will Make Prices Remain High, Going Into 2023
Even though prices of many vehicles have gone down in the past months and are showing signs of stabilizing, experts are warning that prices likely won’t normalize any time soon. Because supplies are still low and the supply chain is still struggling to catch up with demand, it is most likely that prices will not lower to MSRP until sometime in 2023.
As a result, these high prices can also result in dealers making less of a profit. Luckily, dealers have a way to offset these smaller profit margins by cutting costs where they count; better time management, faster communication, and stronger infrastructure all help to reduce costs. And it just so happens that there is an advanced platform currently available that helps to achieve all of these things.
Transportation management software helps dealers to manage their inventory, send and file reports, handle billing, and much more through an easy-to-use software solution. Super Dispatch is a platform that bundles together both a Shipper TMS and load board, which combined make for a highly advanced solution for online car shipping and better management of day-to-day operations as well. Start saving today by requesting a demo from us!
