From the Cox Automotive Newsroom

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welcome to From the press rooma round-up of Cox Automotive news and the views of its analysts and experts on topics dominating the automotive industry.

Like Tiger Woods at the Masters, the retail vehicle market is showing progress in April, with new and used sales gaining momentum last week. According to Cox Automotive Chief Economist Jonathan Smoke in his Auto Market Report video released today, the used-vehicle market is performing better in April. We are finally reaching a critical mass of tax refunds, with the average tax refund at a new record high and up 12% from a year ago.

Wholesale used vehicle prices were reported last week in March Manheim Used Vehicle Value Index (MUVVI), a leading indicator of price changes in the used vehicle market. If you missed it, be sure to watch the replay of the MUVVI quarterly call.

New vehicle transaction prices, reported by Kelley Blue Book yesterday, fell for the third consecutive month but remained above MSRP in March. Recent Cox Automotive Research shows that consumers are pessimistic about the auto market, which is hampered by inventory shortages and high vehicle prices.

During the recent First Quarter Sales Forecast and Industry Outlook WebcastSmoke Filed 10 predictions for 2022 which he and his team did at the start of the year as a B+ in the first quarter.

To note: Manheim today announced that it is expanding its LotVision capabilities to include vehicle diagnostic trouble code data, which will help customers make more informed and confident buying decisions.

We hope you find this selection of articles informative and useful. Visit the Cox Automotive Newsroom for the latest news on the most important industry topics, and mark the Automotive market overviewa single dashboard for the data our team tracks.

USED ​​VEHICLE SALES AND VALUES EXPECTED TO BE STRONGEST IN Q2

Cox Automotive’s Chief Economist, Jonathan Smoke, and Chris Frey, Senior Director of Economic and Sector Insights, moderated the Manheim Used Vehicle Value Index Call for Q1 2022 on Thursday, April 7, with Kevin Chartier of Manheim Consulting and Zach Hallowell of Manheim Digital. The team discussed the Manheim Used Vehicle Value Index in addition to key trends and metrics for the quarter.

“We expect the second quarter – and particularly April – to be the strongest part of the year for used vehicle sales and values,” Cox Automotive chief economist Jonathan Smoke said. “Once we get through the spring, we expect demand to ease somewhat and we should get closer to normal price depreciation patterns for the remainder of the year. That said, we believe our call for don’t expect a price drop in 2022 – just depreciation – is still very likely given the continued challenges with supply conditions.

Watch the replay of the event, download the presentation and read the press release for more details.

SALES DYNAMICS RECOVER AND SUPPLY RECOVERS

In his bi-weekly Auto Market Report video, Chief Economist Jonathan Smoke says Dealertrack data shows retail vehicle sales momentum is accelerating, particularly on the second-hand market where supply follows demand. However, the supply is stretched and is tightening again. Check the Cox Automotive newsroom later this week for new and used inventory data points.

Auto loan availability has improved further, according to March report Dealertrack Credit Availability Indexwhich was the highest recorded in the data series dating back to January 2015.

Read the weekly auto market summary and Watch Automotive Market Report Video for more data and information from Smoke that provides a comprehensive view of the automotive industry.

ICYMI: Watch the replay Q1 2022 Cox Automotive Industry Insights and Sales Forecast Webcast.

TEN PREDICTIONS FOR 2022 TO ACHIEVE A ‘B+’ RATING IN Q1

At the end of the first quarter, we back to the 10 trends that the Cox Automotive Industry Insights team presented at the start of 2022 that are shaping the automotive industry this year. Overall, the Cox Automotive team remains optimistic about the industry. General conditions are favorable for increased sales, but vehicle sales remain relatively weak due to low inventory levels and will not improve until supply becomes available. In addition to the chip shortage and supply chain issues carried over from last year, the Russian invasion of Ukraine has created new supply issues.

So, with three months behind us, we pulled out a red pen and assessed our 2022 forecast so far. Here is an overview to our note Q1.

NEW-VEHICLE TRANSACTION PRICES DROP FOR THIRD CONSECUTIVE MONTH, BUT REMAIN ABOVE MSRP IN MARCH, KELLEY BLUE BOOK SAYS

Average new vehicle transaction prices fell to $45,927 in March 2022 after hitting a record high in December 2021, according to data released yesterday by Kelley Blue Book, a Cox Automotive company. Prices fell 0.3% ($156) month over month, remaining high from a year ago, up 12.9% ($5,247) from March 2021 .

New vehicle inventory day supply was in the low 30s in March while customer demand remained high. These terms allowed dealers to continue selling inventory at or above the Manufacturer’s Suggested Retail Price (MSRP). In March, new vehicles from Kia, Honda and Mercedes-Benz averaged between 7.8% and 9.8% above MSRP. On the other side of the spectrum, Volvo, Buick, and Lincoln were selling about 1% below MSRP.

Discover more details, including percentage price change by automaker and average industry incentive spend as a percentage of average transaction price.

MANHEIM EXPANDS LOTVISION CAPABILITIES TO INCLUDE VEHICLE FAULT CODE DATA

In a move that will help customers make more informed and confident buying decisions, Manheim is rolling out vehicle diagnostic trouble code information to everyone. LotVision– enabled locations nationwide. The expanded capabilities will be available on approximately 80% of Manheim’s vehicle inventory in the second quarter following the successful completion of a two-month pilot program at sites in Texas and California. Today, LotVision tracks approximately 98% of Manheim’s vehicle inventory.

See today’s press release for more details on how Manheim offers customers the most robust list of generic diagnostic trouble codes.

SIX POINTS TO TAKEAWAY FROM THE LATEST CONSUMER IMPACT STUDY ON CHIP SHORTAGE

Consumers are pessimistic about the current auto market, which remains hampered by inventory shortages due to the global shortage of computer chips which, in turn, has driven up vehicle prices, according to the latest Cox Automotive survey.

Cox Automotive has been tracking consumer behavior and attitudes regarding the chip shortage and its consequences since it began in the summer of 2021. The latest survey, conducted in early March, shows that more consumers than ever are aware of the situation . They expect the shortages to last six months or more and prices to continue to rise. To cope, some plan to postpone their purchases. Others plan to order and wait for their vehicles.

See the six takeaways from the latest in Cox Automotive’s series of consumer surveys.

Look forward: The middle of the month is a busy time for new Cox Automotive data. Check back this week for new content on New Vehicle Inventory and Listing Pricing, Used Vehicle Sales, Inventory and Listing Pricing, and the latest Cox Automotive Vehicle Affordability Index / Moody’s Analytics.

Next week, we’ll be releasing 10 takeaways from first-quarter U.S. auto sales as well as the Q1 Kelley Blue Book sales report, including an overview of first-quarter electric and hybrid vehicle sales. Xtime metrics measuring service activity in March at franchise dealerships will also be released.

As always, if you have any questions or wish to contact the Cox Automotive Public Relations TeamDo not hesitate to contact us.

CAR QUOTE

“As Manheim expands its goal of creating a better, more connected customer experience, we are committed to providing the vital information they seek to make their buying and selling decisions. LotVision’s expanded capabilities are also an important next step in helping Manheim advance a more transparent marketplace.

– Bob Grounds, Manheim AVP of Operational Excellent, commenting on the rollout of vehicle trouble code diagnostic information to all LotVision enabled locations nationwide.

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