ARLINGTON, Va.—Total vehicle sales rose to 13 million units from 12.2 million annualized units in October, with monthly sales levels down 20.8% year over year.
"Vehicle sales rose slightly in October but remain well below pre-pandemic levels, and production issues show no signs of improving," said NAFCU Chief Economist and Vice President of Research Curt Long. "Inventory levels cover just 15 days of sales at the present pace. That compares to an average of over 60 days of sales in 2019. After dropping for three consecutive months, Manheim's used car price index is rising rapidly once again. Until production improves, sales will remain tepid and used car prices will continue to soar."
Car sales declined in October from 2.7 million annualized units to 2.6 million annualized units, while light truck sales increased from 9.5 million annualized units to 10.4 million.
Domestic production fell by more than 30% from already low levels in September. Ward's Automotive reports that inventories are down 83% since September 2019.
"Analysts are unsure when the shortage in semiconductors and other parts will ease, but some believe it will extend well into 2022," concluded Long. “NAFCU expects that it will remain a difficult environment for auto lenders through at least the first half of next year.”