J.D. Power Reports: Transaction Prices Reach Record High as New-Vehicle Sales Improve in the First Half of 2014 - KSFY News - Sioux Falls, SD News, Weather, Sports

J.D. Power Reports: Transaction Prices Reach Record High as New-Vehicle Sales Improve in the First Half of 2014

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SOURCE J.D. Power

WESTLAKE VILLAGE, Calif., June 30, 2014 /PRNewswire/ -- Total new-vehicle retail sales in the United States are expected to reach 6.5 million for the first half of 2014, a 6 percent increase over the first half of 2013, according to an analysis by J.D. Power.

J.D. Power corporate logo.

Retail sales at the beginning of 2014 were hampered by extreme weather conditions, but spring has brought a string of record-setting months, as sales have increased on a year-over-year basis for each of the first six months of 2014 (on a selling-day adjusted basis), according to data collected by the Power Information Network® (PIN) from J.D. Power.

Total sales (including sales to fleet buyers) through the first half of 2014 are expected to reach 8.1 million, a 4 percent increase over the same period in 2013, based on a sales forecast developed jointly by J.D. Power and LMC Automotive.

"New-vehicle demand in the first half of 2014 has been robust, as evidenced by both strong sales and record transaction prices," said Thomas King, vice president of PIN. "Looking forward, we expect that strong sales momentum to carry into the second half of the year."



Jan-Jun 2013

Jan-Jun 2014

Year-over-Year
Change

Sales

Total sales

7,817,752

8,090,112

272,360


Retail sales

6,237,132

6,548,700

311,568






Consumer Metrics

% sub-prime

16%

17%

1ppt


Retail sales volume age 16-35

1,473,437

1,578,240

8%


Retail sales volume age 36-55

2,647,191

2,750,450

5%


Retail sales volume age 56+

2,116,504

2,220,010

6%






Purchase Method

Cash sales

18.5%

18.1%

-0.3ppts


Financed sales

57.8%

55.9%

-2.0ppts


Lease

23.8%

26.0%

2.2ppts


72 Month and longer  loans as % of industry retail sales

30.2%

31.8%

1.6ppts


Average finance term (months)

65

66

1


Average lease term (months)

36

36

0

Transaction prices for the first six months of 2014 are at record levels, averaging $29,630, an increase from $28,880 a year ago. Consumer expenditures on new vehicles through the first half of the year also are at a record high of $194 billion, a $14 billion dollar increase from the same period in 2013. 

Automakers and lenders are helping buyers afford these higher prices by providing longer loan term options. Loans with term of at least 72 months account for 31.8 percent of retail sales in the first half of 2014, up from 30.2 percent in 2013.

Leasing is also a popular option for consumers, now accounting for 26 percent of retail sales, compared with 23.8 percent for the first half of 2013.

Media Relations Contacts
Syvetril Perryman; Westlake Village, Calif.; 805-418-8103; media.relations@jdpa.com

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info 
About McGraw Hill Financial www.mhfi.com 

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