Edmunds: Pent-Up Demand to Prop Up New Car Sales in Q2

Edmunds: Pent-Up Demand to Prop Up New Car Sales in Q2

Edmunds forecasts that more than 4 million new cars and trucks will be sold in the U.S. in Q2 2023.

Edmunds forecasts that more than 4 million new cars and trucks will be sold in the U.S. in the second quarter of 2023, which will be a 16.1% increase from the second quarter of 2022 and a 13.8% increase compared to the first quarter of 2023.

“If you look at Q2 in the aggregate, new vehicle sales appeared to settle into a stable groove, which is a nice departure from the tumult that the industry has witnessed over the last few years. More consumers returned to the market with older trade-ins, which indicates that pent-up demand helped buoy sales,” said Ivan Drury, director of insights for Edmunds. “But digging a bit deeper into the data, June tells a slightly conflicting story. After five consecutive months of increasing discounts and vehicles sitting on dealer lots for longer periods of time, June shows that those trends are stalling a bit.”

Edmunds data reveals that the average age of vehicles traded in toward new-car purchases increased in Q2 2023, climbing to 5.6 years, compared to 5.2 years in Q2 2022 and 6.1 years for Q2 2019. Edmunds analysts note that inventory has also continued to slowly improve but isn’t close to returning to pre-pandemic levels — which is keeping prices elevated.

“This road to recovery for the industry has been a winding one. With many automakers committing to better aligning production and demand, we might be on the cusp of seeing what a new normal sales pace looks like compared to the pre-pandemic years, when bloated inventories and deep discounts shaped the industry,” said Drury. “Automakers and dealers are well prepared to pivot amid shifting market dynamics, but this isn’t the best news for consumers hoping for more generous deals heading into the Fourth of July weekend. A return of summer sales banners, waving inflatables and tent events are more likely to be an exercise in advertising over the next few months than desperation to move the metal.”

You May Also Like

Top 5 Stories of the Week

A recap of the top five stories on bodyshopbusiness.com during the week of July 15.

Maaco Opens 16th Location in Illinois

Maaco announced that Bobby Kehagias has opened Maaco’s newest retail center located in Waukegan, Ill.

Read more here.

Crash Champions Expands in New Hampshire

Crash Champions announced it has expanded its New Hampshire footprint with the successful acquisition of Auto City Collision Center.  

PPG Recognized as Best Place to Work for Disability Inclusion

This is the third consecutive year PPG has earned this recognition from the Disability Quality Index.

NABC Donates Recycled Rides to Denver-Area Military Families

The NABC, GEICO, Allstate and Crash Champions recently donated refurbished vehicles to two military families in the Colorado State Capitol.

Tesla Model Y Secures Position as World’s Best-Selling Car in 2023

Sales of the Tesla Model Y totaled 1.22 million units globally, up by 64% from 2022.

Car ADAS Announces First Licensee in Las Vegas

Owners Tanner Scott, Cam Scott and Aja Domingo are proud to unveil their first calibration center addressing the increasing demand for ADAS in the region.

Other Posts
I-CAR Announces 2024 Board of Directors Election Results

Four members have been elected to join I-CAR’s board of directors.

Purnell Body Shop Joins CSN Collision

CSN Collision has announced the addition of Purnell Body Shop of Elkton, Md., to its network.

Repairify, NAPA Launch asTech Mechanical

The new device enables repair shops to connect directly to OE tools operated by certified technicians.

Professionals Auto Body Announces FCA Certification

Professionals Auto Body of Duncansville, Pa., announced that is has achieved FCA certification, which includes Chrysler, Dodge, Fiat, Jeep and Ram.