Improved Inventories Boost December Sales
Dealer profits still high, though fewer units marked above MSRP.

Retailer per-unit profit was forecasted to be down about 20% year-over-year due to reduced dealer markups above MSRP but more than double 2019 figures.
IMAGE: Getty Images/skynesher
December U.S. new-vehicle sales are projected to be up 5.3% year-over-year to 1,254,700, according to a J.D. Power-LMC Automotive forecast.
The combined retail and nonretail sales will occur over the same number of selling days year to year.
The forecasters also see seasonally adjusted quarterly sales up year-over-year by 9.6% to 3,549,800.
Annual sales, though, will be down 8.4% to 13,687,000.
Retail sales alone are projected to have fallen in December, down 2.8% year-over-year to 1,039,200, and for the year, down 11.3% to 11,648,200. Quarterly retail sales are forecasted to be up 1.3% to 2,938,500.
Though retail new-vehicle inventory is improving and therefore boosting sales, finishing its third consecutive month at more than a million units, it still falls short of demand, said J.D. Power Data and Analytics Division President Thomas King.
King said sale prices hit a record high for December, despite slightly increased shopper sensitivity to markups over MSRP, and that dealer per-unit profitability is still nearly double prepandemic levels.
“New-vehicle transaction prices continue to rise—albeit at a slower pace than earlier this year,” King said in a press release, pointing out that the average December price in December was on target to set a record $46,382, up 2.5% year-over-year.
Total retailer per-unit profit was forecasted to be $4,144, down about 20% year-over-year due to reduced dealer markups above MSRP but more than double 2019 figures. For the month, 37% of new vehicles were sold above MSRP, down from 50% in July.
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 →