NADA: April Auto Sales Continue to Lead Economic Growth
MCLEAN, Va. — Falling gasoline prices and continued pent-up demand have spurred spending on new cars and light trucks, with average retail transaction prices rising more than 3% in the first quarter compared to the same period a year ago, the National Automobile Dealers Association (NADA) reported this week.
The average retail transaction price for a new vehicle was $33,189 through the first quarter.
“Consumers clearly feel confident enough in the economic recovery to make big-ticket purchases,” said NADA Chief Economist Steven Szakaly. “While we’ve seen a pullback in investments in other industries, particularly in oil-related industries, automotive retailing remains a growth industry.”
The NADA has forecasted sales of 16.94 million new-light vehicles for 2015.
“The automotive-retailing sector is continuing to outpace growth in the overall U.S. economy,” Szakaly added. “Economic and employment growth were slower than expected in the first quarter but vehicle sales remain strong.”
The strong summer selling season and the allure of new-vehicle models will likely keep sales humming, despite an expected gradual rise in gasoline prices by about 11% over the next eight months of the year, according to the NADA. This year, the light-truck segment, which includes SUVs, CUVs, minivans and pickup trucks, is expected to outsell cars by 56% to 44%, respectively.
The Fed is expected to delay an interest rate increase, but Szakaly said he believe any increase will likely be small. The NADA now forecasts the Fed to raise rates by just 25 basis points in the fall and 35 basis points by the end of 2015.
“The historically strong spring and summer selling seasons will be driven by new and redesigned vehicles as well as competitive financing rates, which bode well for auto sales over the next several months,” Szakaly added.
Szakaly added that strong consumer demand in the used-vehicle market is keeping trade-in values high, which is another value for car buyers.
“Just like the new-vehicle market, we continue to see healthy demand for used cars,” he said. “Those same factors in the new-vehicle market, which include low financing rates, extra spending money and improving employment opportunities, are driving car buyers to the used-vehicle market as well.”
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →