According to a joint forecast from J.D. Power and GlobalData, the automotive retail industry is witnessing a significant upswing in November, with total new-vehicle sales projected to hit 1,236,000 units, a 10.2% increase from the previous year. This rise includes a notable 13% boost in retail sales to 1,041,000 units. These results are projected to increase the seasonally adjusted annualized rate (SAAR) for total new-vehicle sales to 15.5 million units, up 1.4 million units from November 2022.
Thomas King, president of the data and analytics division at J.D. Power, highlights a robust market driven by improved vehicle availability and record consumer spending, which offsets a slight decline in transaction prices to $45,332. Retail inventory levels are recovering, showing a substantial year-over-year increase, yet remain below pre-pandemic figures.
Dealer profits, though declining per unit to an estimated $3,002, still double the pre-pandemic levels, with total retailer profit from new-vehicle sales expected to be $2.9 billion.
This scenario reflects a fluctuating market with higher interest rates and changing consumer preferences. The average finance payment is set to increase, and used-vehicle prices are predicted to decrease yet still exceed pre-pandemic values significantly.
In the realm of electric vehicles (EVs), consumer interest has reached new heights. Elizabeth Krear, vice president of the electric vehicle practice at J.D. Power, notes EVs’ growing affordability and market expansion, with sales accelerating rapidly. The industry anticipates a substantial increase in EV market share in the coming years, underscoring a pivotal shift in consumer auto buying trends.
