Industry, Shipper

What Auto Industry Workers Should Expect Going into Winter 2022

by Ben Price

As the temperature has fallen, so have the sales numbers for many auto workers at around this time of the year. But though the slow-season is here, there have been many new developments in the auto industry, with some signs pointing to big changes soon to come for both consumers and auto industry workers alike.

Here’s a quick rundown on what auto industry workers should expect going into Winter 2022, early 2023, and beyond.

Inventory Levels Are Getting Better, Prices Remain High

Auto industry workers –particularly used car dealers– have had a rough couple of years as both wholesale prices and inventory levels have gotten completely out-of-whack due to the ongoing chip shortages. But thankfully, this issue has at least partially been sorted out. Inventory has begun stabilizing for many local dealers, thanks to many manufacturers releasing new vehicles. 

This has allowed car buyers to more easily find vehicles to purchase, which has helped to offset the used car market, at least in terms of inventory and availability. Used car prices are a different story entirely; prices remain as high as ever, because of the high level of demand. This is probably due to the fact that the shortage has been going on for so long now, it will take quite a bit longer for the marketplace to even itself out. While inventory for some cars has improved, not all models are getting much inventory which is causing used prices to stay high.

Next Year’s Models Are Going Up in Price

It’s already been announced that major auto manufacturers like Toyota are raising their prices, and it’s likely that other brands will follow suit. This makes sense, as both inflation and ongoing semiconductor chip shortages have caused prices to go up. Manufacturers don’t want to take a big hit, so they are passing the additional costs onto the consumer. 

This price increase, combined with the recent interest rate increase, means that consumers will be paying more than ever before for a new car. This is something that auto industry workers should be aware of, as these steep prices will likely cause many consumers to be priced out of the market.

Electric Car Sales Continue to Break Records

Electric car sales broke another record this past quarter, with over 1 million new passenger plug-in electric cars being registered in the month of September – that’s a whopping 51% more than one year ago. The market share of all-electric cars has improved to 13%, and plug-in hybrid accounting for about 4%.

All of this data indicates that the auto industry is moving towards a more electric future, and at a more rapid pace than ever before. While the industry won’t be transitioning fully to EV sales anytime in the near future, the increased popularity of electric cars is certainly nothing to sneeze at.

Sales Slow in Winter Season

As most auto industry workers are well aware of, Winter is seen as the auto industry’s slow season. Not as many consumers are looking to buy at around this time of year, so many auto dealers have to rework their strategies in order to increase sales. One of the most common practices is to price old inventory to sell in order to make room for new stock, and keep sales numbers from dipping too low.

Another practice that has become increasingly more common is going digital – online car sales is more common than ever before, and is a great way for local dealers to increase their sales, particularly during this time of the year.

Try Super Dispatch

If you happen to be an auto industry worker looking to offset lower sales numbers, then this might be a great time to begin offering online sales. But in order to do so, you’ll need to utilize both a Shipper TMS and load board. 

That’s where Super Dispatch comes in – our auto transport platform is an all-in-one system that allows your business to easily manage transport, gain real-time inventory visibility, and streamline communication all in one place and without the need for any additional overhead. If this sounds like a tool that your business could use, then consider  trying it out by requesting a demo today!

Published on November 29, 2022

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