New Vehicle Sales in September 2023

(Reuters) – New vehicle sales in September in the United States are projected to fall 1.8% from a year ago, partly due to three fewer selling days, according to a report by industry consultants J.D. Power and GlobalData.

Seasonally adjusted annualized rate (SAAR) sales of new vehicles are expected to remain flat at 15.8 million units.

Why It Is Important

Rising inventories are prompting larger discounts from manufacturers and retailers, resulting in declining transaction prices. The industry is also affected by reduced leasing activity from three years ago, leading to fewer lessees returning to dealers for new vehicles.

By The Numbers

Total new-vehicle sales for September, including retail and non-retail transactions, are expected to decrease by 1.8%, totaling 1,164,900 units compared to a year ago. Without adjusting for the number of selling days, this represents a 13.2% decline from 2023.

Transaction prices are trending at $44,467, down $1,296 or 2.8% from a year earlier, while the average incentive spend per vehicle has increased by 63.2%.

Total retailer profit per unit—comprising gross vehicle profit plus finance and insurance income—is anticipated to be $2,249, a 29% drop from September 2023.

Key Quotes

> "In September, the interest in EVs by new-vehicle shoppers reached a low point for the year. Just 21.7% of new-vehicle shoppers indicated they were 'very likely' to consider an EV for their next purchase, down 4.2 percentage points from last year," said Elizabeth Krear, vice president of electric vehicle practice at J.D. Power.

> "While the rate adjustment is a positive for the industry, the effect will not be immediate or linear in terms of improving vehicle affordability for consumers, reducing low APR costs for manufacturers, or assisting retailers with floorplan expenses," said Thomas King, president of the data and analytics division at J.D. Power.