Breaking News: September U.S. New Vehicle Sales Expected to Drop 1.8% - Analysis and Impact on Your Finances
According to a report by industry consultants J.D. Power and GlobalData, new vehicle sales in the United States are projected to fall 1.8% in September compared to last year. This decline can be partly attributed to three fewer selling days this month. The seasonally adjusted annualized rate (SAAR) sales of new vehicles are expected to remain flat at 15.8 million units.
Why is this important?
Rising inventories are leading to larger discounts from manufacturers and retailers, resulting in lower transaction prices. The industry is also being impacted by reduced leasing activity from three years ago, leading to fewer customers returning to dealerships.
By the numbers:
- Total new-vehicle sales for September are projected to be down 1.8% at 1,164,900 units.
- Transaction prices are trending towards $44,467, down 2.8% from last year.
- Average incentive spend per vehicle has grown by 63.2%.
- Total retailer profit per unit is expected to be $2,249, down 29% from September 2023.
Key Quotes:
"In September, the interest in EVs by new-vehicle shoppers reached a low point for the year," said Elizabeth Krear, vice president at J.D. Power.
"While the rate adjustment is a positive for the industry, the effect will be neither immediate nor linear," said Thomas King, president of the data and analytics division at J.D. Power.
Analysis:
This news of declining new vehicle sales can have a direct impact on consumers. With larger discounts and lower transaction prices, it may be a good time to consider purchasing a new car. However, reduced leasing activity could limit options for some customers. Overall, understanding these market trends can help individuals make informed decisions about their finances and vehicle purchases.