J.D. Power and LMC Automotive Report: April New-Vehicle Retail Sales Showing
Growth, With Consumer Spending at Record-Level Pace
WESTLAKE VILLAGE, Calif., April 24, 2014
WESTLAKE VILLAGE, Calif., April 24, 2014 /PRNewswire/ -- New light-vehicle
retail sales are expected to reach their highest levels for the month of April
since 2005, according to a monthly sales forecast developed jointly by J.D.
Power and LMC Automotive.
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Retail Light-Vehicle Sales
Retail light-vehicle sales in April 2014 are expected to come in at 1.1
million units, 5 percent higher than in April 2013. The seasonally adjusted
annualized selling rate (SAAR) is expected to be 13.3 million units, more than
700,000 units higher than a year ago.
J.D. Power estimates that consumers will spend $33.5 billion purchasing new
vehicles this month, a historic record level for the month of April. The
previous April high was $30.5 billion in 2005.
"The April 2014 consumer spending reflects a combination of record average
transaction prices—which, at nearly $29,800, surpasses the previous April high
of $28,754 in 2013—and strong retail sales volume," said John Humphrey, senior
vice president of the global automotive practice at J.D. Power.
J.D. Power data shows changes in who is buying new vehicles and how they are
paying for them. Buyers 35 years of age and younger are expected to account
for 25 percent of new-vehicle retail sales in April, marking a rebound to
pre-recession levels. Additionally, nearly one-third of new vehicles sold in
April will be financed with a loan of 72 months or longer, with younger buyers
in particular using the longer term loans to manage their monthly payments.
"Among buyers who are 35-years old and younger, 44 percent opt for 72-month or
longer loans, while only 25 percent of those who are 55 years and older use an
extended loan term," said Humphrey.
Total Light-Vehicle Sales
Total light-vehicle sales in April 2014 are expected to reach 1.4 million
units, a 4 percent increase from April 2013. Fleet sales are forecasted to
increase 3 percent, compared with April 2013, with fleet share of total
light-vehicle sales remaining below 20 percent. Fleet sales through April are
projected to be down nearly 6 percent from the same time frame in 2013. For
the full year, retail sales growth is expected to outpace fleet market growth.
J.D. Power and LMC Automotive U.S. Sales and SAAR Comparisons
April 2014^1 March 2014 April 2013
New-Vehicle Retail 1,230,942 units 1,032,321 units
Sales (5% higher than April
Total Vehicle Sales 1,534,381 units 1,285,750 units
(4% higher than April
Retail SAAR 13.3 million units 13.0 million 12.6 million
Total SAAR 16.1 million units 16.3 million 15.2 million
^1Figures cited for April 2014 are forecasted based on the first 17 selling
days of the month.
^2The percentage change is adjusted based on the number of selling days in the
month (26 days in April 2014 vs. 25 days in April 2013).
LMC Automotive's forecast for total light-vehicle sales in 2014 remains at
16.1 million units.
"Auto sales are hitting their stride as the spring selling season begins, and
the pace has returned to the level expected at this stage of the recovery,"
said Jeff Schuster, senior vice president of forecasting at LMC Automotive.
"Fueling the growth further as the year progresses is a very robust level of
new-model activity, with 63 new or redesigned models expected to hit
showrooms, a 60 percent increase from last year."
The increased availability of vehicles from premium nameplates at lower price
points is expected to increase premium vehicle share of total sales to 13
percent in 2014, up from 12 percent in 2013. The growth is concentrated in the
small premium car segment, whose sales are expected to nearly double from
"Nearly one-half of the new-model activity in 2014 will be premium vehicles,
which is expected to create new competition for mainstream segments as premium
price points cross into those of many non-premium models," said Schuster.
North American Production
LMC Automotive reports that North American production in the first quarter of
2014 is finishing at nearly 4.2 million units, up nearly 4 percent, compared
with the first quarter of 2013.
LMC Automotive has increased its production forecast for 2014 by 100,000 units
to 16.6 million units, a 3 percent increase from 2013. Much of the growth is
due to a 21 percent increase in premium vehicle production, compared with
About J.D. Power
J.D. Power is a global marketing information services company providing
performance improvement, social media and customer satisfaction insights and
solutions. The company's quality and satisfaction measurements are based on
responses from millions of consumers annually. Headquartered in Westlake
Village, Calif., J.D. Power has offices in North/South America, Europe and
Asia Pacific. For more information on car reviews and ratings, car insurance,
health insurance, cell phone ratings, and more, please visit JDPower.com. J.D.
Power is a business unit of McGraw Hill Financial.
About McGraw Hill Financial
McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company
providing the global capital and commodity markets with independent
benchmarks, credit ratings, portfolio and enterprise risk solutions, and
analytics. The Company's iconic brands include:Standard & Poor's Ratings
Services, S&P Capital IQ, S&P Dow Jones Indices, Platts,CRISIL,J.D. Power,
andMcGraw Hill Construction. The Company has approximately 17,000 employees
in 27 countries. Additional information is available atwww.mhfi.com.
About LMC Automotive
LMC Automotive, formerly J.D. Power Automotive Forecasting, is the premier
supplier of automotive forecasts and intelligence to an extensive client base
of automotive manufacturer, component supplier, logistics and distribution
companies, as well as financial and government institutions around the world.
LMC's global forecasting services encompass automotive sales, production and
powertrain expertise, as well as advisory capability. LMC Automotive has
offices in the United States, the UK, Germany, China and Thailand and is part
of the Oxford, UK-based LMC group, the global leader in economic and business
consultancy for the agribusiness sector. For more information please visit
Media Relations Contacts
John Tews; J.D. Power; Troy, Mich.; 248-680-6218; firstname.lastname@example.org
Emmie Littlejohn; LMC Automotive; Troy, Mich.;
No advertising or other promotional use can be made of the information in this
release without the express prior written consent of J.D. Power or LMC
Automotive. www.jdpower.com/corporate www.lmc-auto.com
SOURCE J.D. Power
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