Increased production has boosted February new-vehicle sales to records for the month, according to a report by J.D. Power and LMC Automotive.
The jump has been fueled largely by fleet sales, up 54% year-over-year, the report said, pointing out that the big increase is a result of carmakers’ ramped-up production, along with their making more vehicles available to fleet customers.
Retail and non-retail sales combined are forecast to hit 1.1 million units for the month, up 7% year-over-year. Retail sales of new vehicles alone are projected to increase to nealry 908,000, up 0.1%, as retail availability remained “extremely low,” maintaining high prices and dealer profitability.
The average new-vehicle price in February reached a record for the month at $46,229, the report said, up about 5% year-over-year. Buyers will spend nearly $42 billion on new cars, a record for the month and also up 5% from a year earlier.
The report said retail dealer profit per unit is on track to total $3,820, down 23% year-over-year due to fewer models selling above MSRP but more than double that of 2019.
