J.D. Power and LMC Automotive see solid figures for June ’21 sales
By Gary S. Vasilash
J.D. Power and LMC Automotive have come out with their prediction for how June 2021 sales will come in, and the prediction is that it will be a 12.4% increase over June 2020—which isn’t all that surprising, given that in June 2020 we were still in the midst of the pandemic—and even a smidge, as in 0.3%, better than June 2019 (taking into account available selling days).
However, looking at the second quarter of 2021 in its entirety, things are rather robust, as in a 44.2% increase over Q2 2020 and a 10.7% increase over Q2 2019.
But there are some other figures that need to be taken into account.
One of those numbers is $38,088. That’s the average price of a new vehicle, which is a first half record according to the two organizations. It is a 10.1% (or $3,497) rise compared to the same period in 2019 and a 14.1% (or $4,699) increase over the number in 2019.
The average transaction price—as in what people actually pay for a vehicle from a dealer—is expected to be $40,206, a record high.
The organizations see retailer profits rise from $1,310 in the first half of 2020 and $1,457 in the first half of 2019 to $2,844.
Explains Thomas King, president of the data and analytics division at J.D. Power, “Consumers are buying more expensive vehicles despite smaller discounts, which is dramatically increasing the profitability of those sales for both manufacturers and retailers.”
Although there is evident agitation on behalf of some of an economic bent regarding the rise in inflation, recognize that here are consumers who are buying big, which means that OEMs are going to make more expensive vehicles because they’re selling, which means that there will be a continued rise. . .
Until there isn’t.