Saw the below article today. Bleak numbers for the buyer. Dealerships continue to roll.
(excerpts) full article has info on preowned market and finance rates
- The average incentive offered by dealers has dropped to an all-time low of $1,034, according to a joint estimate from J.D. Power and LMC Automotive.
- The average per-car profit at dealerships is $5,046 — up from $2,733 a year ago — which is offsetting a slower sales pace.
- A growing share of buyers are trading in their car for another preowned vehicle.
The average amount paid for new car is more than $45,200, up 18.7% from a year ago, according to a joint forecast from J.D. Power and LMC Automotive. Buyers are paying about $700 above sticker price on average, Drury said.
At the same time, the average incentive offered by dealers has dropped to an all-time low of $1,034, compared with $2,996 a year ago, the J.D. Power/LMC forecast shows. Generally speaking, dealers don’t need to offer much in the way of incentives to sell cars these days.
In fact, despite the pace of sales being down 23.8% from a year ago due to reduced inventory, the average per-car profit at dealerships is $5,046 up from $2,733 a year ago.
“This elevated per-unit profit level is more than offsetting the drop in sales volume,” said Thomas King, president of J.D. Power’s data and analytics division, in the forecast.
https://www.cnbc.com/2022/05/27/memorial-day-weekend-car-shopping-is-looking-pretty-bleak-.html