Dealers are set to end the year on a high note as new vehicle sales approach double-digit percentage gains in December.
According to a new joint forecast from J.D. Power and GlobalData, new vehicle sales, including retail and non-retail, are projected to improve modestly from November, hitting 1.396 million units by the end of this month, up 13.2% from the prior-year period. Dealers are expected to account for roughly 83% of December’s total sales volume, selling 1.169 million units, a gain of 9.8% from 2022.
Because of these high numbers, J.D. Power and GlobalData anticipate a quarterly new vehicle sales total of 3.826 million units, a year-over-year gain of 9.8%, and a yearly total of 15.466 million units, an increase of 13.2%.
“December results cap off the year with a strong performance, illustrated by double-digit year-over-year sales growth and the second-highest consumer expenditure on new vehicles ever recorded for the month,” states Thomas King, president of the data and analytics division at J.D. Power.
The forecast is likely to ease the dealer community’s concerns over a late-year slowdown in business traffic. After a relatively strong summer, the market began to show signs of falling demand at the end of the third quarter and throughout the fourth quarter. Dealer sentiments dropped significantly toward the end of 2023 as the auto industry began to feel inflation and interest rate pressures increase.
However, December has seen several last-minute encouraging headlines, including strong new vehicle sales and the Federal Reserve’s announcement that interest rate cuts were on the table for 2024. As the retail automotive sector prepares for January, dealers can look forward to starting the New Year on the right foot.
