WESTLAKE VILLAGE, Calif.,
April 24, 2014 /PRNewswire/ -- New
light-vehicle retail sales are expected to reach their highest
levels for the month of April since 2005, according to a monthly
sales forecast developed jointly by J.D. Power and LMC
Automotive.
Retail Light-Vehicle Sales
Retail light-vehicle sales in April
2014 are expected to come in at 1.1 million units, 5 percent
higher than in April 2013. The
seasonally adjusted annualized selling rate (SAAR) is expected to
be 13.3 million units, more than 700,000 units higher than a year
ago.
J.D. Power estimates that consumers will spend $33.5 billion purchasing new vehicles this month,
a historic record level for the month of April. The previous April
high was $30.5 billion in 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.
J.D. Power data shows changes in who is buying new vehicles and
how they are paying for them. Buyers 35 years of age and younger
are expected to account for 25 percent of new-vehicle retail sales
in April, marking a rebound to pre-recession levels. Additionally,
nearly one-third of new vehicles sold in April will be financed
with a loan of 72 months or longer, with younger buyers in
particular using the longer term loans to manage their 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-Vehicle Sales
Total light-vehicle sales in April
2014 are expected to reach 1.4 million units, a 4 percent
increase from April 2013. Fleet sales
are forecasted to increase 3 percent, compared with April 2013, with fleet share of total
light-vehicle sales remaining below 20 percent. Fleet sales through
April are projected to be down nearly 6 percent from the same time
frame in 2013. For the full year, retail sales growth is expected
to outpace fleet market growth.
J.D. Power and LMC Automotive U.S. Sales and SAAR
Comparisons
|
April
20141
|
March
2014
|
April
2013
|
New-Vehicle Retail
Sales
|
1,124,700
units
(5% higher than April
2013)
|
1,230,942
units
|
1,032,321
units
|
Total Vehicle
Sales
|
1,395,300
units
(4% higher than April
2013)
|
1,534,381
units
|
1,285,750
units
|
Retail
SAAR
|
13.3 million
units
|
13.0 million
units
|
12.6 million
units
|
Total
SAAR
|
16.1 million
units
|
16.3 million
units
|
15.2 million
units
|
1Figures cited for April
2014 are forecasted based on the first 17 selling days of
the month.
2The percentage change is adjusted based on the
number of selling days in the month (26 days in April 2014 vs. 25 days in April 2013).
Sales Outlook
LMC Automotive's forecast for total light-vehicle sales in 2014
remains at 16.1 million units.
"Auto sales are hitting their stride as the spring selling
season begins, and the pace has returned to the level expected at
this stage of the recovery," said Jeff
Schuster, senior vice president of forecasting at LMC
Automotive. "Fueling the growth further as the year progresses is a
very robust level of new-model activity, with 63 new or redesigned
models expected to hit showrooms, a 60 percent increase from last
year."
The increased availability of vehicles from premium nameplates
at lower price points is expected to increase premium vehicle share
of total sales to 13 percent in 2014, up from 12 percent in 2013.
The growth is concentrated in the small premium car segment, whose
sales are expected to nearly double from 2013.
"Nearly one-half of the new-model activity in 2014 will be
premium vehicles, which is expected to create new competition for
mainstream segments as premium price points cross into those of
many non-premium models," said Schuster.
North American Production
LMC Automotive reports that North American production in the
first quarter of 2014 is finishing at nearly 4.2 million units, up
nearly 4 percent, compared with the first quarter of 2013.
LMC Automotive has increased its production forecast for 2014 by
100,000 units to 16.6 million units, a 3 percent increase from
2013. Much of the growth is due to a 21 percent increase in premium
vehicle production, compared with 2013.
About J.D. Power
J.D. Power is a global marketing information services company
providing performance improvement, social media and customer
satisfaction insights and solutions. The company's quality and
satisfaction measurements are based on responses from millions of
consumers annually. Headquartered in Westlake Village, Calif., J.D. Power has
offices in North/South America,
Europe and Asia Pacific. For more information on car
reviews and ratings, car insurance, health insurance, cell phone
ratings, and more, please visit JDPower.com. J.D. Power is a
business unit of McGraw Hill Financial.
About McGraw Hill Financial
McGraw Hill Financial (NYSE: MHFI) is a leading financial
intelligence company providing the global capital and commodity
markets with independent benchmarks, credit ratings, portfolio and
enterprise risk solutions, and analytics. The Company's iconic
brands include: Standard & Poor's Ratings Services,
S&P Capital IQ, S&P Dow Jones Indices,
Platts, CRISIL, J.D. Power, and McGraw Hill
Construction. The Company has approximately 17,000 employees in 27
countries. Additional information is available
at www.mhfi.com.
About LMC Automotive
LMC Automotive, formerly J.D. Power Automotive Forecasting, is
the premier supplier of automotive forecasts and intelligence to an
extensive client base of automotive manufacturer, component
supplier, logistics and distribution companies, as well as
financial and government institutions around the world. LMC's
global forecasting services encompass automotive sales, production
and powertrain expertise, as well as advisory capability. LMC
Automotive has offices in the United
States, the UK, Germany,
China and Thailand and is part of the Oxford, UK-based LMC group, the global leader
in economic and business consultancy for the agribusiness
sector. For more information please visit
www.lmc-auto.com.
Media Relations Contacts
John
Tews; J.D. Power; Troy,
Mich.; 248-680-6218; media.relations@jdpa.com
Emmie Littlejohn; LMC Automotive;
Troy, Mich.;
248-817-2100;elittlejohn@lmc-auto.com
No advertising or other promotional use can be made of the
information in this release without the express prior written
consent of J.D. Power or LMC Automotive.
www.jdpower.com/corporate www.lmc-auto.com
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SOURCE J.D. Power