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U.S. auto sales seen falling 1 percent in Dec - J.D. Power, LMC

Published 12/21/2018, 09:15 AM
Updated 12/21/2018, 09:20 AM
© Reuters. An employee of the Tamiami Chrysler Jeep Dodge dealership talks on the phone next to an Chrysler car in Miami

(Reuters) - The pace of U.S. vehicle sales is set to slow for the sixth straight month in December despite aggressive discounts from manufacturers, according to industry consultants J.D. Power and LMC Automotive.

Retail sales in December are expected to fall 1 percent to 1.31 million vehicles from a year earlier, the consultancies said on Friday.

Incentive spending per unit continued in December, as consumer spending is expected to fall for the sixth straight month, J.D. Power and LMC said.

Average transaction price, however, is on pace to reach $34,292, an industry record.

"The continued growth in transaction prices is allowing manufacturers to offset lower sales with higher revenue," said Thomas King, senior vice-president of the data and analytics division at J.D. Power.

© Reuters. An employee of the Tamiami Chrysler Jeep Dodge dealership talks on the phone next to an Chrysler car in Miami

Last week, the National Automobile Dealers Association said new vehicle sales in the United States are expected to drop in 2019, as higher interest rates and rising prices could prompt customers to hold off their car-buying plans. (https://reut.rs/2GAwIXd)

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