Insurance consequences exist.
The projection issued by J.D. Power and GlobalData indicates that consumers expended approximately $578 billion on new vehicles in 2023.
“The December results conclude the year with a robust performance, demonstrated by a significant increase in sales compared to the previous year and the second-highest amount of money spent by consumers on new vehicles ever recorded for this month,” stated Thomas King, the president of J.D. Power’s data and analytics business.
“The total sales for 2023 amounted to nearly 15.5 million vehicles, which reflects a substantial growth of 12.8% compared to the 13.7 million vehicles sold in 2022,” King stated.
In 2023, it was observed that customers set a new record by spending $578 billion on new vehicles. This marks the third year in a row that US consumers have spent over $500 billion.
“The average retail price of new vehicles is decreasing as inventory levels improve,” stated King.
“Despite the decrease in average transaction prices, consumers are projected to allocate approximately $50.4 billion towards the purchase of new vehicles this month, marking the second highest amount ever recorded for the month of December and representing a 5.1% increase compared to December 2022,” he stated.
Projected automobile sales figures for December 2023
The survey predicts that the overall sales of new vehicles in December would reach 1,396,700 units, reflecting a 13.2% year-over-year growth. This figure encompasses both retail and non-retail transactions. Although December 2023 has one fewer selling day compared to the previous year, there is a 9% year-over-year rise in sales volume when comparing the same sales volume without correcting for the difference in the number of selling days.
The projected seasonally adjusted annualised rate (SAAR) for total new-vehicle sales is anticipated to reach 15.4 million units, reflecting a year-over-year rise of 1.9 million units.
Projected for the fourth quarter of 2023, there is an expected 9.8% year-over-year growth in overall sales of new automobiles. This would amount to 3,826,000 units when adjusted for selling days. The estimated new-vehicle total sales for 2023, after accounting for selling days, are expected to reach 15,466,000 units, representing a year-over-year rise of 13.2%.
