DETROIT (AP) \u2014 Shortages of computer chips and other parts continued to hobble the U.S. auto industry last year, contributing to vehicle sales dropping 8% from 2021 to their lowest level in more than a decade.
\nBut there\u2019s good news for consumers in the gloomy numbers: Vehicle supplies on dealer lots are growing, albeit slowly, and automakers expect at least a small easing in prices this year as inventories grow.
\nAutomakers reported Wednesday that they sold 13.9 million cars, trucks, SUVs and vans last year as the parts shortage limited factory output amid high demand for new vehicles. It was the lowest sales number since 2011 when the economy was recovering from the Great Recession.
\nBut sales were up slightly in the fourth quarter and inventories grew as parts supplies improved enough to increase production a little. Analysts are now expecting sales to grow by roughly 1 million to around 14.8 million this year as demand remains strong. But they\u2019ll still be far short of the normal 17 million per year before the pandemic.
\nWith many models still in short supply, though, the average new vehicle price rose 2.5% in December to a record of just over $46,000, according to J.D Power.
\nThere are signs, however, that prices may be starting to ebb a little as inventories expand.
\nToyota, for instance, finished the year with just under 24,000 vehicles on Toyota and Lexus brand dealer lots nationwide. That\u2019s up from about 19,000 at the end of 2021, but still far short of the 300,000 during normal years before the pandemic.
\nThe improvement, although small, is allowing consumers to haggle a little on some slower-selling vehicles such as sedans, and even some luxury vehicles. But they\u2019re still getting top dollar for gas-electric hybrids and other more popular vehicles that are sold before they arrive on lots, said David Christ, general manager of the Toyota Division.
\nFor most of last year, people who wanted new vehicles had to pay sticker price or above and take whatever models and colors dealers could get. But dealers have told Christ that changed a bit in the past two or three months for models that aren\u2019t as popular. Plus, he said more people are interested in lower-cost vehicles because inflation and higher interest rates are taking a bite out of their budgets.
\n\u201cThey\u2019re coming in and saying, \u2018Hey, can I get a deal here?\u2019\u201d Christ said. \u201cI do think that on some vehicles, not just in our brand, and across the industry, there has become a little more of a buyer\u2019s market where the customer can negotiate.\u201d
\nWhether that holds up all year remains to be seen. If demand stays strong and people are willing to pay sticker price, then dealers will get that, Christ said. But if demand wanes or supplies increase dramatically, discounts could rise and prices could drop a bit.
\nJessica Caldwell, executive director of insights at Edmunds.com, said Toyota\u2019s experience is likely to repeat itself through the industry with small price decreases on some models.
\n\u201cThere isn\u2019t as much disposable income to be put into a vehicle,\u201d she said. \u201cWe\u2019ve seen prices high before, but we\u2019ve never really seen higher prices with the (higher) interest rates.\u201d<\/p>\n