J.D. Power’s first quarter 2020 Auto Financing Report has good and bad news regarding auto sales, a key target market for credit unions. While new-vehicle retail sales for the 2019 calendar year are projected to reach only $13,717,600 – a 1.7% decrease compared to 2018 – annual retail sales reached a record number of units sold.
Average transaction prices in December are on pace to set a record of $34,602, up $673 from last year. Growth is being driven by prices of truck/SUVs, which are expected to reach $36,935, an increase of $655 from last year. Prices for cars are up to $27,461, a modest increase of $79.
Overall, the news is positive because looking at the entire year, annual retail sales will reach more than 13.7 million units in 2019. This represents the 10th-best retail sales year in history and a modest 232,000-unit decline from last year.
The number of units sold was down, but overall, the money spent on transport was up $8.4 billion from last year and marks the first time that expenditures will exceed $460 billion. Learn more here.
LEVERAGE offers auto loan opportunities through partner Credit Union Loan Source (CULS) and tracking through PAR. Click here for details.