More evidence that the supply of new cars and trucks continues to improve, as US auto sales in March are poised to rise about 6% in March from March 2022.
But does that mean availability and prices are returning to “normal” levels? No way, not yet.
Inventory is still so thin relative to demand that the average new vehicle transaction price is on track for a March monthly record of $45,818, up 3.5% from a year ago, according to a forecast from JD Power and LMC Automotive.
The forecast calls for March sales of about 1.3 million new cars and trucks for the month. That would bring first-quarter sales to about 3.5 million, up 7% from a year ago.
Despite better availability, higher interest rates keep the average monthly new vehicle loan payment above $700, JD Power and LMC Automotive said. In March, the average monthly payment was about $711, up 7% from a year ago. The average payment topped $700 for the first time in July 2022.
The average interest rate on new vehicle loans is estimated at 6.7% in March, up from 4.4% a year ago, according to the forecast. This also serves to prop up your average loan payment.
In addition, forecast firms said much of the monthly sales increase will go to fleet sales, including daily rental car fleets. This does nothing to increase availability on dealer lots for individual new vehicle buyers.
JD Power and LMC Automotive forecast fleet sales of 240,200 in March, up 31.4% from March 2022. Fleets are expected to account for 19% of total light vehicle sales for the month, up from the 15% a year ago.
In a separate filing on March 16, Cox Automotive said new vehicle inventory at the start of this month was up 68% from a year ago. But at less than 2 million units, inventory was still about half of what it was in 2019, before the pandemic.
