Car prices continue to rise in America with a significant decline in sales

The car market in the United States of America witnessed the continued rise in car prices in America, but with increasing concerns about the global economy, new car sales fell significantly, as a joint report from JD Power and LMC Automotive indicates that retail sales of new cars in America during this period The month will reach approximately 965,300 cars.

Thus, this is a decrease of 18.2% compared to June 2021, and total new car sales, including retail and non-retail car sales are expected to reach 1,133,000 units during this month, which is also a decrease of 15.8% compared to the same month during the year. past 2021.

Car prices rise in America as new car sales decline

With the rise in car prices in America, the volume of new car sales has declined, as total new car sales during the second quarter are likely to end at 3,488,800 units or less, which is 20.5% from the second quarter of 2021.

In addition to the above, car experts expect that the total sales of new cars in America during the first six months of 2022 alone will reach 6,781,300, which is an 18.7 decrease from the first six months of 2021.

This decline in new car sales comes as a result of many factors, foremost of which is the rise in car prices in America due to economic and political conditions at the global level.

According to JD Power’s forecast, the average transaction price for the first 6 months of 2022 will reach $44,907, a 17.5% percentage increase over 2021, and retailers’ profit rates are also expected to rise from $2,206 per unit in half. The first of 2021 to $4,774 per unit during the first half of 2022.

America spends $44.3 billion on car purchases in 6 months

Car prices are likely to continue to rise in America, as the average price of new cars purchased during the month of June is expected to reach $ 45,844, its highest level ever, and while overall sales decline, consumers are expected to spend approximately $44.3 billion on new vehicles this month.

In this regard, Thomas King, who is responsible for the data analysis department within JD Power, says that although cars in America continue to rise, as well as profits, the lack of inventory has led to a decline in sales.

Thomas King emphasized that June 2022 continues on the right track, marking the eighth consecutive month that retail inventory closes below 900,000 units, and the manufacturer’s discounts are expected to continue to erode.

JD Power mentioned in its report that a decrease was observed in the volume of average incentive spending to purchase each car, reaching about $930 during this month, which is equivalent to a decrease of 59.4% from last year.