Analysts predict a strong surge in U.S. car sales for the month of November, despite a slight decrease in transaction prices. According to Deutsche Bank, the seasonally adjusted annual rate is estimated to reach around 15.5 million vehicles, solidly surpassing last year’s figure of 14.4 million. This reflects an impressive 8% increase in year-on-year sales, driven by a 7% rise in retail sales and an 11% boost in fleet sales. Another influential forecast from J.D. Power projects an overall 10% increase.
While Ford Motor Co. and Rivian Automotive Inc. are expected to report their November sales, General Motors Co. and Tesla Inc. have shifted to quarterly reports and will update investors in early January.
Amidst these positive developments, the average transaction price for a new vehicle has decreased by 7% year-on-year, settling at approximately $45,000. Additionally, dealerships are experiencing a resurgence in incentives as inventories, particularly for pickup trucks, have significantly improved.
J.D. Power and GlobalData also anticipate a 10% surge in November new-car sales compared to the previous year. They project the November SAAR to align with Deutsche Bank’s estimate at around 15.5 million vehicles.
Despite a six-week United Auto Workers strike that disrupted production, J.D. Power notes that rising inventories have contributed to the strong sales growth. In fact, U.S. consumers are on track to spend a record-breaking $44.5 billion on new vehicles this November, marking an impressive 9.5% increase compared to November 2022.