F&I and Showroom, NADA 2021

DEVELOPMENTS 6 F I and Showroom NADA 2021 ANALYSIS OF 2020 AUTO SALES 2021 SALES FORECAST NADA The National Automobile Dealers Association NADA issued its 2020 analysis of U S auto sales and the economy The coronavirus pandemic certainly impacted new lightvehicle sales in 2020 not to mention the U S economy as a whole said NADA chief economist Patrick Manzi Our forecast at the start of 2020 estimated new light vehicle sales would fall by one to two percent compared to 2019 for a total of 168 million units sold but once COVID hit we knew this would be a different year than anticipated 2020 came to a close with new light vehicle sales of 1446 million units down 147 compared to 2019 Despite the lowest monthly SAAR on record of 87 million units in April GETTYIMAGES COM BAONA signs of the new vehicle sales recovery began in the second half of the year as retail consumers returned to dealer lots While the overall new vehicle market fell by 147 consumer retail sales only declined by an estimated 9 Given a stronger than anticipated sales recovery manufacturing facility shutdowns and robust new vehicle demand most U S dealerships faced significant inventory constrains on popular models and popular segments during the second half of the year including crossovers and pickups By mid summer tight inventory meant that OEMs and dealers pulled back incentive spending Coupled with consumer preferences for more expensive light trucks this pushed average transaction prices to record highs throughout the year In March the Federal Reserve slashed interest rates to the 0 to 025 lower bound helping vehicle buyers with their monthly payments and dealers with their floorplan costs In The Road to 2021 continued on page 8