In December, Automakers Sell Cars, Trucks As Fast As They Can Build ‘Em

JD Power and LMC Automotive forecast that increased new car and truck supply will push U.S. car sales in December up just over 5% compared to December 2021. Separately, Cox Automotive released a roughly similar forecast on Dec. 28, up about 4% from a year ago. The availability of better new vehicles is enabling increased sales. But analysts say the increase in supply could weaken potential demand as consumers worry about the economy, rising interest rates and, with a few exceptions, low incentives for new cars and trucks. It is said that there is a possibility that it will be canceled by The availability of new cars has improved along with the supply of computer chips used in automobile manufacturing. However, chips are still in short supply and inventories are well below pre-pandemic levels. According to JD Power and LMC Automotive, in December 2022, retail-ready new car inventory will exceed 1 million units for the third straight month. Fleet sales to rental companies, commercial and government agencies are also expected to increase in December. Fleet accounted for an estimated 17% of total sales in December, up from his 10% a year ago. "But not enough vehicles have yet been produced to meet demand," according to the forecast. That spell continued with higher prices. Thomas King, president of data and analytics at JD Power, said average transaction prices are on pace to reach a record high of $46,382 in December, and compared to December 2021, he's It said it was up 2.5%. Interest rates on average new car loans are expected to hit 6.4% in December, up from about 3.9% a year ago, according to JD Power and LMC Automotive. King estimates the average monthly payment for a new car loan is $718, up 7% from a year ago. Conversely, the average incentive per unit is expected to be just $1,187, down from $1,511 a year ago. As a percentage of suggested retail price, the average incentive is expected to be 2.5%, down from about 3.3% a year ago.