The car industry in America is a mess. A shortage of the chips used in car electronics and navigation systems has shuttered assembly lines, hurt dealers, and undermined manufacturer earnings. Because of the shortage, some cars are flying off dealer lots, and the hottest-selling car in America is the Honda CR-V.
Car prices, both new and used, are among the fastest rising items in the consumer price index, well into the double digits year over year. The car market may get even more complicated with rising interest rates. These will affect what car companies and banks charge car buyers for loans. (This is the most overpriced used car in America.)
Among the likely consequences of these shortages is that people will keep cars longer. Last year, the average age of a vehicle on the road was over 12 years. Improved quality of manufacturing and product design has made it possible for people to keep cars with well over 100,000 miles on them.
Most experts believe the chip shortage will last into next year. That means inventories will remain small.
One of the primary measures of inventory and car demand is what the industry calls “day to sell,” which reflects the period from when a car is delivered to a dealer until when it is sold and a customer takes possession. The figure for new cars across the industry was 35.5 days in March, iSeeCars reported. That was well under the average of the last few decades.
iSeeCars executive analyst Karl Brauer commented: “Inventory constraints have persisted for new cars due to supply chain issues in Asia and Europe, and the new car market is struggling to keep up with pent-up demand.”
To find the hottest selling cars in America, 24/7 Wall St. reviewed iSeeCars’ Fastest-Selling New and Used Cars in Today’s Market. The study, based on 150,000 new and used cars sold in March, found the 20 fastest-selling new and used cars. 24/7 Wall St. listed the fastest-selling new cars. Among the fastest-selling new models, the average days on the lot was a very low 19.3 days.
Across the 20 cars on the list, the days-to-sell figures ranged from 1.5 times to 4.7 times faster than the industry average for new vehicles. The trend toward the popularity of SUVs, which began years ago, has not ended. Thirteen of the 20 fastest-selling cars were SUVS. This could change if gas prices remain at over $4 for a gallon of regular. Consumers may be pushed toward lighter cars with smaller engines.
In March, the hottest selling car in America was the Honda CR-V at 7.6 days on the lot. The average price of the CR-V was $33,073 — was low by industry standards. The CR-V is Honda’s compact SUV. It gets unusually good mileage at 28 city / 34 highway. The car generally gets good reviews. Car and Driver ranks it 9 out of 10. (While the CR-V’s price is relatively low, this is the cheapest car in America.)
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