The automotive forecast in the United States for the month of December, in terms of total new vehicle sales that include both retail and non-retail transactions, is expected to reach 1,396,700 units, according to a joint forecast from J.D. Power and GlobalData.
The projection represents a 13.2% increase from December 2022, which had one additional selling day compared to December 2023’s 26. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to come in at 15.4 million units — an increase of 1.9 million units from December of last year.
“December results cap off the year with a strong performance, illustrated by double-digit year-over-year sales growth and the second-highest consumer expenditure on new vehicles ever recorded for the month,” said Thomas King, President of the Data and Analytics division at J.D. Power, in a statement.
He added that total sales of just under 15.5 million for 2023 are notable as they represent an increase of 12.8% from 2022, which saw 13.7 million vehicles sold. Furthermore, and of additional interest, is the record $578 billion stemming from consumer expenditure on new vehicles this year; this marks the third consecutive year in which U.S. consumers spent over half a trillion dollars on purchasing new vehicles.
“As inventory improves, the average new-vehicle retail transaction price is declining. Transaction prices in December are trending towards $46,055, down $1,274 — or 2.7% — from December 2022,” said King. “However, even with the decline in average transaction prices, consumers are on track to spend nearly $50.4 billion on new vehicles this month — the second highest on record for the month of December and 5.1% higher than December 2022.”
