New Cars Are Selling Over a Week Faster Than They Did in July
Find out if you’re getting ripped off on your car insurance in less than two minutes.
No long forms · No spam · No fees
Between a global pandemic affecting consumers’ buying habits and a global chip shortage affecting auto manufacturers’ supply chains, car sales have been unpredictable this past year.
For example, though driving rates have plunged overall with more people working from home, in some places cars are selling at even higher rates than pre-pandemic. Similarly, the semiconductor chip shortage has affected different automakers in different ways: at one point Ford’s sales were down by 33%, while electric vehicle sales increased.
All that said, it appears that the effects of the shortage may finally be diminishing: new cars sold over a week faster in August than they did in July, according to a recent report by iSeeCars.
In making the report, iSeeCars took data from over 900,000 car sales in August, pulling from the sales of both new and used cars. The report shows that used car sales are also picking up speed, though the acceleration of new car sales is more pronounced.
A report by iSeeCars finds that new cars sold over a week faster in August than they did in July, with used car sales also picking up speed.
New car sales speed up despite chip shortage
iSeeCars Executive Analyst Karl Brauer attributes the August sales acceleration to car-buyers finally realizing that the chip shortage isn’t going anywhere. After fruitless months of waiting for spiking car prices to go down, consumers may finally be ready to bite the bullet and buy.
“The microchip shortage is showing no signs of slowing down as major automakers continue to halt production, leading to lower and sometimes scarce inventory levels, especially for the most in-demand vehicles,” said Brauer.
“It looks like car buyers who were initially waiting for prices to drop have embraced the reality that inventory shortages are here to stay, at least for the next several months,” he added.
The fastest selling new cars this August
In their report, iSeeCars found that the average new car took only 26 days to sell, and the average used car, 34.6. In July, the average new car took 35 days to sell, and the average used car, 35.4 days.
The report listed the 20 fastest selling new cars this August. These cars sold within an average of 9.9 days, selling more than 2.4 to 3.3 times faster than the average new car.
The Hyundai Santa Cruz took the number one spot, with an average selling time of eight days. “This aggressively-styled Santa Cruz truck is a niche vehicle that appeals to consumers who don’t need the full function of a traditional pickup but want the occasional cargo-hauling an open-bed offers an SUV,” said Brauer.
The Chevrolet Corvette was a close runner up, with an average sell time of 8.3 days. This model was the fastest selling in July, but was just beat out with the recently released Santa Cruz.
“Demand for the mid-engine Chevrolet Corvette has exceeded supply since its launch for the 2020 model year,” said Brauer, adding due to the skyrocketing demand for the model, dealers consistently sell it for over the manufacturer’s suggested retail price.
Other fast sellers include the Mercedes-Benz GLS, with an average selling time of almost nine days; the Subaru Crosstrek, with an average selling time of nine days; and the Toyota RAV4, with an average selling time of nine-and-a-half days.
The fastest selling used cars this August
iSeeCars also compiled a list of the 20 fastest selling used cars. While these vehicles only took an average of 24.7 days to sell, the average used car takes 34.6 days.
The number one fastest selling used car in August was the Tesla Model 3, which took only 16.9 days to sell and has topped this list for three months straight. “The Tesla Model 3 has remained popular since its highly anticipated debut, thanks to its impressive technology and performance at a relatively affordable price,” said Brauer.
“Tesla continues to see record sales growth for its new vehicles, and demand for used Tesla models is on the rise as well,” Brauer added.
The runner-up was the Toyota Highlander Hybrid, with a sales time of 21.9 days. “Just like in the new car marketplace, Toyota hybrid vehicles are hot sellers due to their reliability and advanced technology,” said Brauer.
The BMW 4 Series and Toyota Prius tied the Highlander Hybrid for the second-place spot, both also taking an average of 21.9 days to sell.
The takeaway? If you’re looking to buy a new car, stop waiting for the market to stabilize—sales are speeding up again, and you’ll need to act fast if you want to secure your model of choice.