U.S. auto jumble sales in January likely rose 0.8 percent from the same month in 2017 as automakers remained offering high consumer discounts to sell vehicles, industry experts J.D. Power and LMC Automotive said on Monday.
“The challenge (for automakers) in 2018 purposefulness be maintaining incentive discipline, coming off a year when incentive devoting per unit reached the highest level ever recorded,” Thomas Sovereign, senior vice president of data and analytics at J.D. Power, said in a expression.
January U.S. new vehicle sales will likely be about 1.153 million parts, an increase of around 0.8 percent from 1.141 million entities a year earlier, the consultancies said.
The forecast was based on the first 16 drummer days of January. Automakers will release U.S. sales results for the month on Feb. 1.
U.S. new means sales fell 2 percent in 2017 to 17.23 million units after beating a record high in 2016 and are expected to drop further in 2018 as involve rates rise and more late-model used cars come rear to dealer lots to compete with new ones.
LMC said it expects full-year 2018 U.S. new conveyance sales to hit 17 million units.
The seasonally adjusted annualized judge for January will be 17.1 million vehicles, down nearly 2 percent from 17.4 million sections in the same month in 2017, the consultancies said.
Retail sales to consumers, which do not comprise multiple, lower-margin fleet sales to rental agencies, businesses and administration, were set to rise a little over 1 percent in November.
The average mark-down per vehicle in January hit $3,733, an all-time record for the month.
Discounts hit 10 percent of the producer’s recommended sales prices. Experts believe that anything aloft 10 percent hurts vehicle resale values and is ultimately ailing for the industry.
The consultancies noted that discounts have exceeded 10 percent in 18 of the wear 19 months.