November New-Car Sales to Be Flat
Report shows interest rates, continued high prices cramping volume.
Retail new-car sales are projected to be down 0.3% year-over-year, though there’s one additional selling day this month compared to November 2021.
IMAGE: Getty Images
November new-car sales are forecasted to be flat year-over-year due to a combination of rising interest rates and continued high sticker prices.
A monthly report by J.D. Power and LMC Automotive shows that though vehicle inventory is improving, consumers are curtailing big-ticket spending due to higher borrowing costs brought about by interest rate hikes, coupled with a continued increase in car prices, albeit at a slower rate.
The report indicates that the average monthly finance payment in November will total $712, up 7.2% year-over-year.
Retail new-car sales are projected to end the month at 933,400, down 0.3% year-over-year, though there’s one additional selling day this month compared to November 2021.
Retail and non-retail sales combined are forecast to be 1,102,300, up 5.6% year-over-year.
"On the retail side, demand continues to exceed supply, as evidenced by continued strength in transaction prices, retailer profits, inventory turn rates and minimal manufacturer discounting,” said Thomas King, president of J.D. Power’s data and analytics division. “However, as inventories and interest rates rise, these metrics will show signs of either moderation or decline."
The report put November’s average new-vehicle price at $45,872, a record for the month and up 3% year-over-year.
King said he anticipates the dynamics seen this month will continue into next year.
Originally posted on Auto Dealer Today
More Auto Finance
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →