New Car Prices Reach Record Featured

By Staff Writer January 31, 2019 502

New vehicle retail sales in January are expected to fall from a year ago, according to a forecast developed jointly by J.D. Power and LMC Automotive.

Retail sales are projected to reach 864,300 units, a 2.4 percent decrease compared with January 2018. The seasonally adjusted annualized rate (SAAR) for retail sales is expected to be 13.2 million units, down 451,100 from a year ago.

Retail sales to-date are down 3.8 percent nationally, but in the North Central region, which includes the Midwest states that were hampered by a snow storm, retail sales were down 6.2 percent.

The average transaction price in January is on pace to reach $33,285, the highest level ever for the month.

The record prices reflect higher prices trending for both cars (up 5 percent to $27,708) and trucks/SUVs (up 2 percent to $35,659).

Incentive discipline is also helping, as spending is expected to decline year-over-year for the seventh consecutive month. January to-date spending is $3,720 per unit, down $136 from the same time last year.

Consumers are on pace to spend nearly $29 billion in autos in January, which is up slightly from last year.

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Last modified on Thursday, 31 January 2019 14:39