As we reach the midpoint of the year, we’re seeing a pattern of trends highlighting that the vehicle market will likely continue to face challenges in the second half of 2022.
New inventory declined 5% in June as vehicle production remains challenged and likely will be through the rest of the year. This means the hoped-for recovery in new inventory will probably be pushed out further. Used inventory continued its recovery, increasing 2.3% from May. However, the cost of that inventory was pushed up further due to the lack of new vehicle production. This, in turn, is causing consumers to proceed with caution for historically high-priced vehicles.
Prices across the board rose in June – although the rate of increase slowed – hopefully suggesting we may be approaching a peak. New average listing price was up 0.2% from May but remains up 39.1% year-over-year, while used prices rose 0.7% from last month and are up 46.3% annually. The surge in prices compared to last year is causing days-on-market to rise as consumers let higher-priced vehicles sit. The average new days-on-market jumped 7.9% in June compared to May, while used days-on-market increased 1% from May.
To learn more about vehicle inventory trends, download the June 2022 edition of the CarGurus CA Vehicle Availability Index & Insights Report.