Thanks in part to warmer weather, a forecast jointly developed by J.D. Power and LMC Automotive predicts that retail sales with hit 1.1 million units in April, or 5 percent higher than the same month a year prior. April’s seasonally adjusted annualized selling rate (SAAR) is expected to hit 13.3 million units, which would be more than 700,000 units higher than last year’s mark.
Moreover, April 2014 will likely represent the highest level of consumer spending ever recorded for the month. New car shoppers are predicted to spend $33.5 billion this month, representing a healthy increase over the previous high of $30.5 billion set in April 2005.
“The April 2014 consumer spending reflects a combination of record average transaction prices–which, at nearly $29,800, surpasses the previous April high of $28,754 in 2013–and strong retail sales volume,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power.
An interesting trend is also unfolding in April. More than 25 percent of new car buyers are expected to be 35-years-old or younger this month, matching pre-crash levels. Of those 35 and under, nearly half are taking advantage of longer-term loans that allow for lower monthly payments.
“Among buyers who are 35-years old and younger, 44 percent opt for 72-month or longer loans, while only 25 percent of those who are 55 years and older use an extended loan term,” said Humphrey.
Total light vehicles sales, which include fleet sales, are expect to hit 1.4 million units this month, up 4 percent from the same period last year.
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