auto dealer in black and red logo
MenuMENU
SearchSEARCH

Improved Inventories Boost December Sales

Dealer profits still high, though fewer units marked above MSRP.

January 3, 2023
Improved Inventories Boost December Sales

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

2 min to read


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.

READ MORE: New-Vehicles Sales Healthy in First Six Months

More Dealer Ops

Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

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 →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

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 →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

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 →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

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 →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

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 →