Total new-vehicle sales for March 2023, including retail and non-retail transactions, are forecast at 1,330,700 units, a 6.2% increase from March 2022, according to data just released from J.D. Power and LMC Automotive*. New-vehicle total sales for Q1 2023 are projected to reach 3,526,700 units, a 7.3% increase from Q1 2022 when adjusted for selling days. New-vehicle transaction prices continue to rise, with the average price reaching a March record of $45,818.

“March is shaping up to be yet another positive month for the industry. With retail sales forecasted to be up nearly 2%, along with average transaction prices tracking up 3.5%, consumers are on pace to spend nearly $50 billion this month, an increase of 5.5% from what they spent on new vehicles a year ago,” said Thomas King, president of the data and analytics division at J.D. Power.

“Retail demand for vehicles remains strong, due primarily to considerable pent-up demand” said King. “The availability of new vehicles in inventory at retailers is improving, resulting in a softening of dealer margins and increased manufacturer incentive spending. But, overall, the industry remains supply constrained, and profitability is well above historical norms.”