To find the most compelling explanation for why (unsold new cars and trucks are starting to pile up at dealerships), the U. S. auto retail industry is looking to the U. S. to find the most compelling explanation for why (unsold new cars and trucks are starting to pile up at dealerships), the U. S. auto retail industry is looking to the U. S. UU. se is gearing up for an active spring sales season, with a slight increase in discounts.
“The increase in sources has brought back discounts and incentives,” Charlie Chesbrough, senior economist at Cox Automotive, said on a recent conference call.
The incentives helped boost U. S. auto sales in March, forecasters said, as part of a modest and slow rise in discounts. The auto industry began to return to more general inventories last year, after a severe shortage of new cars since the start of the pandemic, computer chip shortages and other issues generate spare parts.
Estimates for March sales hover between 1. 4 million and 1. 5 million cars and trucks combined. This is a clear improvement over March 2023. Sales are expected to increase accordingly during the first quarter.
A joint forecast by J. D. Power and GlobalData forecasts sales of about 1. 5 million for the month of March, up about 12% from a year earlier. Another prognosticator, S
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When demand for new and high-end vehicle inventories was low (inventories fell below one million units for much of 2021, less than the equivalent of a typical month’s worth of sales), automakers and dealers didn’t have to worry as much about affordability.
Today, this is the case, with peak interest rates and higher inventories. According to J. D. Power, the average retail transaction value of a new vehicle in March is estimated at $44,186. This is down 3. 9% from March 2023.
Meanwhile, J. D. Power says retail inventories are estimated at 1. 7 million units at the end of March, representing an increase of 4. 2% through the end of February 2024 and 39. 3% through March 2023.
“The trends are pretty clear, cars want to be more affordable,” Thomas King, president of Data and Analytics and chief product officer at J. D. Power, said in a March 26 presentation at the New York Automobile Forum.
The Auto Forum sponsored through the National Association of Automobile Dealers, J. D. Power and the Automobile Dealers Association of Greater New York. The New York Area Dealers Association hosts the New York International Auto Show, which is open to the public from March 29 to April 7.