Wednesday, November 26, 2014WESTLAKE VILLAGE, Calif. -- Retail sales of new vehicles in the month of November are projected to reach their highest level, 1.1 million units, for the month since 2001, a 5.5% increase on a selling-day adjusted basis, compared with November 2013, say J.D. Power and LMC Automotive.
This November has one fewer selling day than November 2013.
The seasonally adjusted annualized rate is expected to reach 13.5 million units, 200,000 units stronger than in November 2013, according to the monthly sales forecast that Power and LMC developed. Retail transactions are the most accurate measure of underlying consumer demand for new vehicles, they say.
"The industry continues to demonstrate strong sales growth, which is exceptional considering that November is currently on pace to record the highest average customer-facing transaction prices ever," said John Humphrey, senior vice president of the global automotive practice at J.D. Power.
Through Nov. 16, retail transaction prices are averaging $30,874, or $165 above the record of $30,709 in October 2014. Combined record transaction prices with strong new-vehicle retail sales has November on pace for a record month for consumer spending on new vehicle at $33.3 billion, or $1.1 billion above the record set in November 2013.
J.D. Power forecasts that more than 238,000 units will be sold over the Thanksgiving holiday weekend, which would make it the second-highest-volume holiday weekend of 2014. The Labor Day weekend typically records the most sales of the year, with 279,000 units sold in 2014.
Total light-vehicle sales are projected at 1.26 million units, up 5% from November 2013. November historically is a low month for fleet sales, with this month expected to come in below 15% of total sales of light vehicle with a volume of 178,000 units.
As 2014 nears to a close, LMC Automotive is holding the 2014 U.S. light-vehicle retail sales forecast at 13.6 million units and total U.S. light-vehicle sales forecast at 16.4 million units.
Published by The Business Journal, Youngstown, Ohio.
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