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Consumers spend record-breaking amount on new vehicles in Q1

March is shaping up to be yet another successful month for this industry, according to Thomas King, head of J.D. Power's data and analytics group.

According to a joint prediction from J.D. Power and LMC Automotive, total new vehicle sales for March 2023, including retail and non-retail transactions, are anticipated to reach 1,330,700 units, a 6.2% rise from March 2022. 

The number of selling days in March 2023 is equal to that in March 2022. When accounting for selling days, it is anticipated that Q1 2023 new-vehicle total sales will reach 3,526,700 units, a 7.3% rise over Q1 2022.

On the other hand, Retail sales of new vehicles are anticipated to rise in March 2023 compared to March 2022. This month, new car retail sales are anticipated to reach 1,090,500 units, up 1.9% from March 2022.

March is shaping up to be yet another successful month for this industry, according to Thomas King, head of J.D. Power’s data and analytics group. Consumers are on pace to spend close to $50 billion this month, an increase of 5.5% from what they spent on new automobiles a year ago, with retail sales predicted to be up nearly 2% and average transaction costs tracking up 3.5%.

Pent-up demand is the primary reason why automotive retail demand is still robust. Dealer margins are becoming more flexible, and manufacturer incentive spending is rising as new vehicles are becoming more readily available in retailer inventories. However, the industry as a whole still faces supply constraints, and profitability is much above historical averages,” King asserts. 

Transaction prices for new cars are increasing and set a new high in March of $45,818. From a year earlier, this is a 3.5% gain.

Due to the record transaction costs, buyers are expected to spend close to $50 billion on new cars this month, which would be a 5.5% rise from March 2022 and the second-highest amount for the month of March. Consumers spent more than $132 billion on new vehicles in the first quarter of 2023, which is a record-high for any quarter and 4.4% more than Q1 2022.

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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