Dive Brief:
- J.D. Power and GlobalData said Thursday that total new-vehicle sales in the U.S. will reach 1,354,600 units in August, a 15.4% year-over-year increase.
- They estimate the seasonally adjusted annualized rate for new-vehicle sales will be 15.3 million units, a 2.1 million unit increase over August 2022.
- Retail sales of new vehicles will reach 1,108,800 units this month, a 10.4% year-over-year increase when adjusted for the number of selling days, the report said. There are 27 selling days this month compared with 26 last August.
Dive Insight:
Thomas King, president of the data and analytics division at J.D. Power, said in a statement that increased vehicle production and strong fleet demand have driven double-digit sales growth for the last five months.
J.D. Power and GlobalData said August fleet sales will increase 45.6% year-over-year, but dealer profits per vehicle will decline to $3,534, a 26.4% decrease compared with the same period last year.
“The primary reason for the decline in profit is that fewer vehicles are being sold for prices higher than the manufacturer's suggested retail price,” King said. “This month, only 28.5% of new vehicles are projected to be sold above MSRP, which is down from 46.8% in August 2022."
Although total retail profits will drop 16.8% year-over-year to $ 3.7 billion, it’s still the third-best August on record, according to the report.
"Retailers continue to sell vehicles before they physically arrive at the dealership. However, with increased inventory levels, more shoppers are now able to purchase vehicles from dealer lots,” King said. J.D. Power and GlobalData estimate dealers will sell 45% of new vehicles within 10 days of arriving at the dealership, down from a peak of 57% in March 2022.
The analysis estimates that manufacturer discounts will hold steady compared with July. Vehicle incentives per vehicle will double year-over-year, reaching $1,902 this month.
Trucks and SUVs will account for 78.6% of new-vehicle retail sales in August, J.D. Power and GlobalData said.
