New Vehicle Sales Expected To Reach Record High For Month Of April 2021
Sponsored Links
New vehicle sales are expected to reach a record high for April this year, according to a recent forecast published by J.D. Power.
The auto industry research firm predicts retail vehicle sales will hit 1,325,500 units in April, a 110.6 percent increase compared with April 2020, and a 20.8 percent increase compared with April 2019. Total new vehicle sales for April 2021, meanwhile, which includes retail and non-retail fleet transactions, are projected to reach 1,479,800 units, a 107.1% increase from April 2020 and a 7.8% increase from April 2019.
Researchers at Cox Automotive are similarly bullish with their retail sales forecast for this month, predicting new vehicle sales to come in at around 1.36 million units.
These strong sales results come despite the lingering COVID-19 pandemic and the semiconductor chip shortage, which have led to tight inventories at dealerships nationwide. While inventory remains a problem for most automakers, the smaller supply and increased demand has negated the need for automakers to offer steep incentives on vehicles and driven consumers to pay closer to MSRP than in years prior.
“While falling numbers of vehicles in inventory at retailers is the primary risk to sales results in the coming months, to date, low inventories have not had a material effect on aggregate sales results,” said J.D. Power’s president of data and analytics, Thomas King. “Instead, they have enabled manufacturers and retailers to reduce discounts and consumers are demonstrating a willingness not only to buy vehicles closer to MSRP, but also to buy more expensive vehicles.”
Cox Automotive sees a similar sentiment. While new vehicle inventories continue to affect the industry, a resurgent U.S. economy driven by the vaccine rollout will likely result in sustained strong vehicle sales in the coming months.
“There is little reason to expect buyer interest to wane anytime soon given recent economic growth rate expectations and improvements to consumer sentiment,” said Charlie Chesbrough, a senior economist at Cox Automotive. “But inventory is a huge problem in the vehicle market – a lingering result of the COVID-19 shock last year.”
With automakers offering fewer sales incentives, average transaction prices are also going up. According to J.D. Power, the average transaction price in April is expected to rise 6.8 percent year-over-year to $37,572 – the second highest all time on record behind December 2020. Average transaction prices were significantly lower just five years ago, Cox Automotive points out, sitting at $31,240 for April 2016.
“Consumers will spend $49.8 billion on new vehicles this month, the highest ever for April and the third-highest consumer expenditure month on record,” J.D. Power said.
The used vehicle market is seeing a similar rebound as the COVID-19 pandemic wanes. With less new vehicle inventory sitting on dealer lots, more consumers are turning to the used market – resulting in smaller used vehicle inventories and thus higher prices.
Subscribe to GM Authority for more sales results news and around-the-clock GM news coverage.
- Sweepstakes Of The Month: Win a 2021 C8 Corvette Z51 Convertible. Details here.
Sponsored Links
Great time to buy a vehicle if you are a dealer,overpay for a color which may not be your favorite with options you may not want or you can not get.
It’s not wise for people to be buying brand new vehicles that are priced over $40K right now when we’re still in a pandemic that could easily change or worsen from another outbreak regardless of vaccinations that honestly don’t prevent people from catching new strains of the virus.
It’s mind boggling how expensive vehicles have become lately. I can’t imagine the huge monthly auto loan, expensive insurance rates and yearly registration that comes along with owning a new car. Especially a truck that is considered a commercial vehicle here in CA and you will get Effed when it comes to yearly registration fees which is incredibly high in CA.
Buying used is the way to go IMO especially if they’re cars that were super expensive brand new that you always wanted, you can pick them up for over half of what they cost new today in just an short 2-3 years.
Fools and their money I guess. Being debt slaves forever.
even buying used may put you in peril,once the lots are full of new again the now overpriced used will drop like a rock and if it gets totaled or you decide to trade you will have a rude awakening
Renewed my registration in March on my 2019 Silverado 1500 LD, LT. $730.00. Yes California tags are expensive! Love the weather though….
You can thank the Idiot Liberals that ruined this State. The working class here are screwed. If you are mega rich , illegal alien, criminal or a lazy welfare scammer you are set.
What is GMs current share of the US retail market? Thinking 15-18%.
Daniel how many years is your regs good for.
In California registration tags are usually for 1 year.
One whole year!