U.S. Gross sales and stock charges are up modestly from final 12 months, says a brand new report from Cox Automotive. Nevertheless costs for brand new automobiles stay excessive, regardless of the brand new provide accessible. Gross sales are anticipated to extend practically 4 per cent from final 12 months, and final month. Whereas the February 2023 auto gross sales tempo, or seasonally adjusted annual price (SAAR), is predicted to achieve 14.4 million, a decline from January’s “surprisingly robust” 15.7 million stage, with elevated auto mortgage charges and protracted inflation, a gross sales tempo decline from January was anticipated by Cox Automotive.
Affordability is “a rising headwind” for car consumers however is impacting new and used gross sales in a different way because the spring season approaches. “Now we have diverging markets right now. New-vehicle costs stay excessive whereas used retail costs at the moment are in decline,” mentioned Charlie Chesbrough, senior economist at Cox Automotive.
“New stock is slowly stabilizing whereas used provide is falling. Nevertheless, I wouldn’t be shocked to see this case change later within the spring. With many affordability-seeking car consumers leaving the brand new marketplace for the used, sellers could discover they’ve too little used stock, and value declines could reverse. And, OEMs could discover they’ve an excessive amount of new-vehicle stock and be pressured to be extra aggressive with incentives to spice up gross sales.”
February 2023 Gross sales Forecast Highlights
- Mild car gross sales are anticipated to complete close to 1.105 million, a 3.9% rise from final month and a 4.0% enhance from February 2022.
- The SAAR in February 2023 is estimated to be 14.4 million, above final February’s 13.7 million stage however down from January’s 15.7 million tempo.
- Fleet gross sales are anticipated to indicate robust year-over-year positive factors over February 2022’s inventory-limited market.
- February 2023 has 24 promoting days, equal to each February 2022 and January 2023.