New Vehicle Transaction Prices Edge Higher
J.D. Power and LMC Automotive report predicts average new vehicle transaction prices will hit a record $46,259 in August.

J.D. Power and LMC Automotive report predicts average new vehicle transaction prices will hit a record $46,259 in August.
IMAGE: Getty Images
Average new vehicle transaction prices are expected to hit a record $46,259 in August, representing an 11.5% increase from a year earlier, according to a report from J.D. Power and LMC Automotive.
But an inventory shortage continues to temper new vehicle sales. The auto industry consultants predict retail sales of new vehicles will reach 980,400 units in August, a 2.6% decrease from 2021.
This latest forecast shows that the U.S. Reserve interest rate hikes have yet to have a large impact on the auto industry.
"In September, the constraints are expected to continue, with sales being hampered by inventory. In the near term, prices and per-unit profitability will remain strong," Thomas King, president of the data and analytics division at J.D. Power told Reuters.
The consultants also predict that the Inflation Reduction Act’s tax credit boost for electric vehicles will not have measurable industry impact because of limited EV availability.
The August seasonally adjusted annualized rate (SAAR) for total new vehicle sales should hit 13.3 million units, up 0.2 million units from 2021, the report noted.
J.D. Power and LMC Automotive increased their 2022 global light-vehicle sales forecast by nearly 1 million units to 81.8 million as the market in China grows. The Chinese market is expected to see 8% growth in sales compared to 2021.
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →