High demand for new cars, trucks and SUVs has been a constant theme throughout the latter half of 2021 and is expected to continue into the New Year, according to a recent market analysis conducted by Edmunds.
The market research firm recently published its automotive market forecast for 2022, which predicts that 15.2 million new cars will be sold in 2022 – an increase of 1.2 percent from this year. Just like this year, the number of new cars sold won’t hinge on how much demand there is, but rather if automakers will be able to keep up with that demand.
“In 2022 there won’t be a question of how many new vehicles consumers will buy, but how many vehicles automakers can actually produce,” Edumunds’ experts said.
Additionally, Edmunds believes consumers will pay higher prices for more option-rich vehicles in 2022. This trend started this year as consumers put down increasingly high sums to purchase richly-optioned new vehicles at or above MSRP. Edmunds’ data revealed the average vehicle cost of a vehicle in 2016 was 30 percent above the starting MSRP – a figure that climbed to 38 percent this year.
Analysts also estimate that EV market share in the U.S. will climb to four percent next year, eclipsing 600,000 units for the first time ever between both retail and fleet markets. This growth will be driven by the introduction of new mass-market EVs like the Ford F-150 Lightning, the company says.
With elevated new vehicle demand set to remain in the New Year, Edmunds experts also say that used vehicles will continue to draw in more shoppers. This could make acquiring a new or used vehicle somewhat difficult and time-consuming for some consumers – a process that Edmunds senior manager of insights, Ivan Drury, says can be helped by planning ahead.
“Consumers who are planning on making a vehicle purchase in 2022 must prepare for a much different market and car shopping experience compared to years past,” Drury said. “Competition for new vehicles will be fierce as inventory shortages persist, and serial lessees might need to do some extra planning and research before their lease agreement ends to find affordable options.