Click chart to enlarge with more information.
New light-vehicle sales increased for the seventh straight month in February 2023 compared with the year before. February’s SAAR (seasonally adjusted annual selling rate) of 14.9 million units was up 8.6% from February 2022. “This boost was likely aided by higher inventory and incentive spending,” Patrick Manzi NADA Chief Economist said today. Fleet sales also rose, jumping 39% from February 2022, according to Wards Intelligence. (autoinformed.com on:US Light Vehicle Sales Up in February Amid Uncertainty)
J.D. Power, forecast average incentive spending per unit to total $1335 in February, up 4.7% compared with a year ago. “But even though incentive spending has now increased for four straight months, there continues to be a lack of incentives directed toward leasing.
“Power predicts that leasing will account for just 18% of retail sales in February, down significantly from the pre-pandemic level of 31% in February 2019. Monthly payments continue to increase due to rising inter est rates and elevated new-vehicle prices. The average monthly payment in February, says J.D. Power, should reach $722, up $59 year over year. The average interest rate on a new-vehicle finance contract in February is expected to be 6.8%—an increase of 252 basis points over last year,” Manzi noted.
“Looking ahead, we believe that vehicle production will show continued improvement in March. Wards Intelligence expects that 2023 Q1 North American light-vehicle production will grow by 7.3% compared with the first quarter of 2022. This should be good news for continued inventory growth throughout the year. We believe that with more inventory available, new light-vehicle sales will increase in 2023. Our full-year forecast is 14.6 million units,” said Manzi.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
NADA Economist Predicts 14.6 Million Light Vehicle Sales
Click chart to enlarge with more information.
New light-vehicle sales increased for the seventh straight month in February 2023 compared with the year before. February’s SAAR (seasonally adjusted annual selling rate) of 14.9 million units was up 8.6% from February 2022. “This boost was likely aided by higher inventory and incentive spending,” Patrick Manzi NADA Chief Economist said today. Fleet sales also rose, jumping 39% from February 2022, according to Wards Intelligence. (autoinformed.com on:US Light Vehicle Sales Up in February Amid Uncertainty)
J.D. Power, forecast average incentive spending per unit to total $1335 in February, up 4.7% compared with a year ago. “But even though incentive spending has now increased for four straight months, there continues to be a lack of incentives directed toward leasing.
“Power predicts that leasing will account for just 18% of retail sales in February, down significantly from the pre-pandemic level of 31% in February 2019. Monthly payments continue to increase due to rising inter est rates and elevated new-vehicle prices. The average monthly payment in February, says J.D. Power, should reach $722, up $59 year over year. The average interest rate on a new-vehicle finance contract in February is expected to be 6.8%—an increase of 252 basis points over last year,” Manzi noted.
“Looking ahead, we believe that vehicle production will show continued improvement in March. Wards Intelligence expects that 2023 Q1 North American light-vehicle production will grow by 7.3% compared with the first quarter of 2022. This should be good news for continued inventory growth throughout the year. We believe that with more inventory available, new light-vehicle sales will increase in 2023. Our full-year forecast is 14.6 million units,” said Manzi.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.