FI showroom red and grey logo
MenuMENU
SearchSEARCH

J.D. Power, LMC: Loan Terms Stretching, March Sales Maintain Feb.’s Pace

March’s retail SAAR should match February’s 12.1 million-unit reading, J.D. Power and LMC Automotive reported this week. The two firms also spot a stretching of loan terms, with 72-month or longer loans now at record levels.

by Staff
March 21, 2013
4 min to read


WESTLAKE VILLAGE, Calif.New-vehicle salesremain strong in March, as both the light-vehicle retail selling rate and the total light-vehicle rate are consistent with February’s performance at 12.1 million units and 15.3 million units, respectively, according to J.D. Power and Associates’ Power Information Network (PIN) and LMC Automotive.

March new-vehicle retail sales are expected to come in at 1.158 million vehicles — represent a seasonally adjusted annualized rate (SAAR) of 12.1 million units — with volume approaching a double-digit increase from March of last year.

Ad Loading...

The two firms also noted that the average new-vehicle transaction price ($28,504) rose 3 percent from March 2012. Leases account for 23.1 percent of new-vehicle retail transactions in March 2013, up from 20 percent in March 2012.

In addition, the percentage of retail sales with a 72-month or longer loan is at record levels, reaching 32.1 percent in March 2013, an increase from 30.4 percent in March 2012.

U.S. Retail SAAR—March 2012 to March 2013

“While longer loan terms have traditionally been a cause for concern to the industry due to the risk of purchase cycle extension, it is not necessarily as daunting as it may seem.” said John Humphrey, senior vice president of the global automotive practice at J.D. Power and Associates. “The longer loans are being offset by more leasing and the low interest environment, which means that consumers are able to put more of their monthly payment towards their loan principal rather than interest fees.”

Humphrey also notes that strong used-car values mean that consumers have more equity in their trades and can finance lower amounts. In addition, consumers who may have been shut out of the market in recent years are finding that a longer loan makes buying a new vehicle affordable.                                                            

Ad Loading...

Total Light-Vehicle Sales

Total light-vehicle sales in March are projected to reach 1.465 million units, an 8 percent increase from March 2012. Fleet share is expected to hold at 21 percent.

J.D. Power and LMC Automotive U.S. Sales and SAAR Comparisons

March 20131

February 2013

March 2012

New-Vehicle Retail Sales

1,158,000 units2

(10% higher than March 2012)

928,130 units

1,093,601 units

Total Vehicle Sales

1,465,100 units

(8% higher than March 2012)

1,190,707 units

1,402,503 units

Retail SAAR

12.1 million units

12.1 million units

11.4 million units

Total SAAR

15.3 million units

15.3 million units

14.1 million units

1Figures cited for March 2013 are forecasted based on the first 14 selling days of the month.

2The percentage change is adjusted based on the number of selling days in the month (27 days in March 2013 vs. 28 days in March 2012).

Ad Loading...

Sales Outlook

The outlook for 2013 remains strong and consistent with the pace expected to be set in the first quarter. LMC Automotive is holding its 2013 U.S. forecast for total light-vehicle sales at 15.3 million units and the retail light-vehicle forecast at 12.5 million units.

“Building on the current performance, we expect the economic environment to improve throughout 2013, as the likelihood of a dark cloud slowing the recovery pace diminishes,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive. “Consumers do not appear phased by headwinds from Washington, as growth in auto sales are outperforming earlier expectations.”

North American Production

Vehicle production in North America is up three percent through February 2013, compared with the same period in 2012. Production of models in the compact segment is outpacing the total market, up seven percent thus far in 2013. Production of vehicles in the midsize and large segments has increased 1 percent and likely will hold in a slower growth position as General Motors readies the ramp-up of its redesigned large pickups. Production of compact cars and compact premium CUVs is up 15 percent in the first two months of 2013, driven by the addition of the Dodge Dart, Nissan Leaf and the redesigned Acura RDX.

Ad Loading...

Vehicle inventory levels in early March increase to a 64-day supply, compared with 74 days in February. Overall, there are nearly 3.2 million units currently available on dealer lots or in transit — an increase of approximately 600,000 units from March 2012. Both car and truck inventories have dropped approximately 10 days from last month. Cars began March with a 61-day supply and trucks with a 68-day supply.

LMC Automotive's forecast for North American production remains at 15.9 million units for 2013, an increase of three percent from 2012.

"While there is a significant amount of activity below the topline production in 2013—from more than 50 new-model ramp-ups to reduced exports to Europe — the underlying trend remains positive and on target for 2013 to improve from 2012,” said Schuster.


More F&I

Man holding magnifying glass over sales volume paper.
F&IMay 29, 2026

Why Your F&I PVR Is Misleading You

Here’s a handy checklist of the numbers to track in 2026 instead.

Read More →
Photo of woman typing on a laptop as she sits on a couch
F&Iby Hannah MitchellMay 29, 2026

Auto Consumer Anxiety Presents Opportunity

A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.

Read More →
Dustin Gingerich standing on stage giving a presentation
F&Iby Lauren LawrenceMay 28, 2026

Humble and Hungry: 12 Rules for an F&I Life

Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.

Read More →
Ad Loading...
Photo of businessman's hands resting on files on a desk
F&Iby John TabarMay 27, 2026

Focus on the Opening

F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.

Read More →
Photo of a three-seat vehicle back seat
F&Iby Hannah MitchellMay 22, 2026

F&I Reaches for the Sky

The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

Timing the Market Can Hurt Long-Term Program Performance

For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.

Read More →
Ad Loading...
Ryan Ruff, The 90/10 Rule, Automotive Training Academy, Sales Series
F&IMay 6, 2026

The 90/10 Rule

In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.

Read More →
Photo of essential oil diffuser on desk next to laptop
F&IMay 4, 2026

Your Office Is Talking

What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.

Read More →
"Effective training ensures the customer’s needs remain at the heart of everything we do. When that is the focus, both sales and profits naturally improve." by Rick McCormick with F&I and Showroom logo and picture of Rick McCormick
F&IMay 1, 2026

F&I Training Fundamentals

How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.

Read More →
Ad Loading...
Photo of car tire and the tread mark it left in snow
F&Iby Hannah MitchellApril 29, 2026

Not Just Any Tire Will Do

More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.

Read More →