MenuMENU
SearchSEARCH

New Vehicle Transaction Prices Edge Higher

J.D. Power and LMC Automotive report predicts average new vehicle transaction prices will hit a record $46,259 in August.

August 25, 2022
New Vehicle Transaction Prices Edge Higher

J.D. Power and LMC Automotive report predicts average new vehicle transaction prices will hit a record $46,259 in August.

Credit:

IMAGE: Getty Images

1 min to read


Average new vehicle transaction prices are expected to hit a record $46,259 in August, representing an 11.5% increase from a year earlier, according to a report from J.D. Power and LMC Automotive.

But an inventory shortage continues to temper new vehicle sales. The auto industry consultants predict retail sales of new vehicles will reach 980,400 units in August, a 2.6% decrease from 2021.

This latest forecast shows that the U.S. Reserve interest rate hikes have yet to have a large impact on the auto industry.

"In September, the constraints are expected to continue, with sales being hampered by inventory. In the near term, prices and per-unit profitability will remain strong," Thomas King, president of the data and analytics division at J.D. Power told Reuters.

The consultants also predict that the Inflation Reduction Act’s tax credit boost for electric vehicles will not have measurable industry impact because of limited EV availability.

The August seasonally adjusted annualized rate (SAAR) for total new vehicle sales should hit 13.3 million units, up 0.2 million units from 2021, the report noted.

J.D. Power and LMC Automotive increased their 2022 global light-vehicle sales forecast by nearly 1 million units to 81.8 million as the market in China grows. The Chinese market is expected to see 8% growth in sales compared to 2021.

 

More Dealer Ops

F&Iby StaffApril 2, 2025

DOWC Powers the Future of F&I for NESNA

Company is providing a fully integrated F&I administration model to Nissan Extended Services North America’s dealer network.

Read More →
IndustryNovember 27, 2024

Six Powerful Questions

Take the time to answer these and lay the groundwork for a successful year-end.

Read More →
Dealer Opsby Hannah MitchellSeptember 19, 2024

Sunny Side Up

Many dealers are going green – both environmentally and cash-wise – by powering their stores with solar-generated electricity.

Read More →
Ad Loading...
IndustryAugust 26, 2024

Is It Time to Rethink Business Development Centers?

Their role at automotive dealerships is essential today to give salespeople time to close deals.

Read More →
Product & Technologyby Hannah MitchellAugust 22, 2024

A Backup Plan

DMS outage revealed a gap that dealers may want to fill.

Read More →
Dealer OpsAugust 20, 2024

Maximizing Revenue Potential

The strategic imperative for auto dealers is to prioritize F&I product sales and wealth-building in challenging times.

Read More →
Ad Loading...
IndustryAugust 7, 2024

How to Optimize Liquidity in a Fluid Environment

It's wise to not take your dealership's banking relationships for granted.

Read More →
IndustryJuly 29, 2024

Unlocking the Keys to Success

Why customer retention matters now more than ever

Read More →
Dealer Opsby StaffJuly 23, 2024

Store Names First Female Dealer Principal

Howard Bentley Buick GMC is now headed by Taylor Bentley Conner.

Read More →
Ad Loading...
IndustryJuly 18, 2024

Masters in Training

Rick McCormick preaches the wisdom of breaking into what he considers the top 3% of F&I managers with a stance of continuous development.

Read More →