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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.

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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.

 

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