Car prices have risen at a rate not seen in years. In fact, some of the fastest rising components of the consumer price index are new and used cars.
One reason car prices have risen so quickly is a lack of supply, primarily due to a shortage of the semiconductor chips used in the electronic and infotainment systems in modern cars. The shortage will not improve until well into this year, or later. Car dealers have such shortages of some models that they have started to overcharge for them, compared to what manufacturers say they should sell for. Car company management has attacked some of these dealers.
One primary yardstick for shortages is called “days to sell.” This is the period from when a car is delivered to a dealer until a new owner drives it away. Among new car models, iSeeCars puts the average number at 36.3 days. In a normal year for the industry, this number is closer to between 50 and 60 days.
The iSeeCars Fastest-Selling New and Used Cars study, which covers January, was released recently. Used car prices rose 36.9% during the month. iSeeCars Executive Analyst Karl Brauer pointed out: “Buyers who don’t want to pay inflated used car prices are turning to the new car market which is leading to further inventory constraints as the market struggles to keep up with pent-up demand from the ongoing microchip shortage.”
The iSeeCars analysis for January included a review of 280,000 new and used cars sold during the month.
The fastest-selling new car in January was the Kia Telluride, which had an average of 12.8 days to sell. The Telluride is one of Kia’s sport utility vehicles. It gets strong reviews from car media, including Motor Trend and U.S. News.
Here are the 20 fastest-selling new cars in America:
|Vehicle||Days to Sell||Price|
|Toyota Highlander Hybrid||17.5||$48,115|
|Toyota RAV4 Hybrid||18.2||$36,194|
|Hyundai Ioniq 5||18.5||$49,881|
|Toyota Corolla Cross||18.6||$28,411|
|Hyundai Tucson Hybrid||19.9||$34,716|
|Lexus GX 460||20.6||$61,986|
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