State of Automotive Inventory Fact Sheet

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Amid shortages, many dealers have begun pre-selling new incoming models and marketing their in-bound inventory to keep up with consumer demand and maximize ROI. To account for delivery delays, it's important to engage pre-sale customers early, such as those approaching the end of their lease, finance term or warranty. State of Automotive Inventory Fact Sheet While dealers entered the year on a high note as the automotive retail industry began to recover, few dealers were prepared to overcome the inventory crisis in 2021. Though some brands have undoubtedly fared better than others, no OEM is fully immune from the effects. As of Q3, IHS Markit compiled data from more than 300 plant-specific outages across 63 carmakers when compiling the forecasts. While some relief is likely in store for 2022, it's critical dealers remain nimble and continue looking ahead to achieve sustainable success. The dealers that are best equipped to navigate future decisions and adapt to ongoing challenges caused by evolving external factors are the ones who look at the numbers: IHS Markit, November 2021 Heading into Q4, an estimated 7.4 million light vehicles were not built worldwide as a result of the chip shortage. While some dealers are capitalizing on historic consumer demand by charging high above sticker price or blanketing their marketing with trade-in offers, others are leveraging this opportunity to build trust with buyers. Taking a personalized approach, create a buying experience that speaks to customers' concerns, including marketing F&I products like extended warranties and wrap coverage, or even assistance in raising their credit score. IHS Markit, September 2021 By mid-year, certified pre-owned registrations increased by 11% compared to 2020 as sales reached 1,218,255 units.

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