Automotive Market Update 2-8-24: Upward

Tax Refund and Spring Selling Season Issue

Job growth reaccelerated to stronger-expected heights in January. January saw 353,000 jobs created when 185,000 had been expected. The prior two months were revised up for a net increase of 126,000 more jobs than originally estimated.

The new vehicle sales pace declined to the slowest since March 2023 and with affordability driving demand in 2024, we can expect, as Cox Automotive Forecasted, New car sales to stay stagnant throughout the year, despite supply. America’s car dealers started the month of October with about 2.26 million unsold cars on lots — 8% fewer than a year ago. The average transaction price (ATP) in the United States for new vehicles in January is expected to be $45,106, down $1,636 from the same period in 2023.

At current sales rates, 2.26 million is about a 47-day supply of used cars. That’s well below the 60-day supply car dealers traditionally aim to keep in stock. The number of used vehicles available for purchase has remained …… READ MORE HERE.