“I believe we’re gonna have loads of challenges within the broader macroeconomy right here within the U.S.,” Manzi mentioned. “However typically, I believe we will see a 12 months of strong progress, strong employment features and actually good car gross sales.”Challenges dealing with auto retailers embrace the lingering world scarcity of microchips, waning shopper sentiment and rising gasoline costs, he mentioned.
Inflation is also a priority, as prices rise on automobiles, housing and meals. That is a key purpose shopper sentiment is at its lowest since 2011, Manzi mentioned.
“Except you have been sleeping underneath a rock final 12 months, you already know that car pricing has gone up pretty considerably,” Manzi mentioned.
Wholesale used-vehicle values hit document after document in 2021. However values might peak within the coming months as tax return season stimulates demand, Manzi mentioned. He expects them to degree off, with seasonality returning by way of the 12 months.
“I do wish to be clear, although, that I don’t anticipate to see a dramatic fall-off in used-vehicle values that comes abruptly,” Manzi mentioned.
He additionally predicted that 2019 degree costs won’t return. There may very well be an elevated ground for used-vehicle values going ahead, he mentioned. The common used-vehicle transaction value was $26,709 in 2021, up from $22,027 in 2020 and $20,094 in 2019, based on NADA.
On the similar time, he added, if gasoline costs stay excessive, extra prospects might contemplate buying automobiles with various powertrains.