Edmunds Worsening Chipset Situation To Tank Q3 New Vehicle Sales
October 1, 2021
Analysts forecast a SAAR of 12.3M in September as inventory shortages
continue to squeeze the industry
car shopping experts at Edmunds forecast that 3,416,266 new cars and
trucks will be sold in the U.S. in the third quarter of 2021, which
reflects a 13% decrease from the third quarter of 2020 and a 22.7%
decrease compared to the second quarter of 2021.
"New vehicle sales in the third quarter have been a direct reflection of
the worsening chipset and inventory situation. Although consumer demand
continues to run high, sales have continued to slide downward each month
because there simply aren't enough of the vehicles that shoppers want,"
said Jessica Caldwell, Edmunds' executive director of insights. "The
entire U.S. auto industry — including the Asian manufacturers, which
were doing a bit better than their domestic counterparts until recently
— is in an incredibly volatile position right now and we are seeing
inflated retail prices across the board. It's growing extraordinarily
hard to predict who will come out on top heading into the rest of the
year, as every automaker is at the mercy of its suppliers and challenged
logistics around the globe."
Edmunds analysts expect this volatility to continue through the rest of
2021, they advise car shoppers to do extra research, be flexible, and
brace themselves for higher prices and increased competition if they
know they need to make a new vehicle purchase soon.
"If you're one of the millions of Americans with a lease ending this
year and are happy with the car you have, consider buying out your
vehicle or extending your lease to avoid the hassle of making a new
purchase," said Ivan Drury, Edmunds' senior manager of insights. "If you
do need to get into a new vehicle and see anything you like at this
point, it's best to bite the bullet and make the purchase immediately.
Don't wait as the situation could get worse, and don't try to pit
dealers against one another for the best price: You'll more than likely
end up empty-handed because there will likely be plenty of other
shoppers vying for the same vehicle."