New-car sales close in on 17M | Auto Finance News | Auto Finance News

New-car sales close in on 17M

Powered by strong November sales showings from Toyota Motor North America and Honda Motor Co., yearend light-vehicle volume is on track for 17 million units for the fifth straight year.

Total light-vehicle sales for the year are on pace to hit 17.1 million units, down 1.4% from 2018, according to J.D. Power and LMC Automotive.

Toyota notched its best November ever, with year-over-year sales up 9.2% to 207,857 vehicles. Toyota’s increase was propelled by a 26.4% increase in sales of the RAV4 compact SUV. Meanwhile, Honda sales climbed 11% to 133,952 vehicles, spurred by demand for SUVs and trucks.

November sales were buoyed by incentives – which hovered around $4,538, up 12.1% year over year – marking the first time ever above $4,500, according to J.D. Power.

Those higher incentives, prompted by OEMs looking to move vehicle inventory, translated to a slowdown in appreciation of average transaction price, according to Kelley Blue Book (KBB). The average transaction price for November was $38,393, up 1% year over year, KBB noted. By comparison, October transactions were up 2.9% and November 2018 transactions were up 2.1%.

Further, as of Nov. 30, vehicles had been lingering on vehicle lots for an average of 80 days, five days longer than last year and the highest level recorded since 2017, according to KBB.

For more content like this, join us at the upcoming Auto Finance Accelerate event, March 9-11 at the Omni San Diego. Combining three crucial topics in auto lending and leasing, Auto Finance Accelerate dives into the strategies and knowledge needed to enhance your company’s auto finance sales, marketing, and innovation. Register before Friday, January 31st to save with early registration rates. Visit www.AutoFinanceAccelerate.com to learn more.

  Like This Post