JDP: Sales Accelerate on Record-High Q3 Incentives
J.D. Power and LMC Automotive analysts predict that, despite a slow start to 2019 and a short September, third-quarter new-vehicle sales will rebound on the strength of a 6% increase in factory incentive spending.

Moving Labor Day to August on this year’s new-vehicle sales calendar robbed September of a holiday weekend. Analysts project a selling day-adjusted decrease of just 7.8%.
Photo by Capri23auto via Pixabay
COSTA MESA, Calif. — New-vehicle retail sales in September are expected to fall from a year ago, according to a forecast developed jointly by J.D. Power and LMC Automotive. Retail sales are projected to reach 1,007,000 units, a 15.2% decrease compared with September 2018.
However, this year’s Labor Day weekend was credited to August for reporting purposes. Controlling for one fewer weekend, this translates to a year-over-year decline of 7.8%.
New-vehicle retail sales in Q3 are projected to reach 3,622,500, flat compared to Q3 2018. In contrast, new-vehicle retail sales in the first half of the year were down 2.9%. The seasonally adjusted annualized rate for total sales is now expected to be 16.8 million units, down 500,000 units from a year ago.
Read: Used-Vehicle Prices Up 2% From 2018
“After delivering record sales results in August, when retail sales rose 6.2% on a selling day-adjusted basis, the decline in September sales was expected and reflects a quirk in how the industry reports sales,” said Thomas King, senior vice president of the Data and Analytics Division at J.D. Power. “The large decline in sales this month is driven primarily by the timing of the Labor Day holiday. … With close to 250,000 new vehicles sold during the holiday weekend, the exclusion from September reporting is significant.”
King noted that “noise” in the monthly results mean it makes sense to evaluate performance over the entire quarter. Retail sales in Q3 are expected to be flat compared with the same time period last year. This is a “remarkable” improvement from the first half of the year and the first quarter in nearly two years without a year-over-year sales decline, King said.
The decline in September sales was expected and reflects a quirk in how the industry reports sales.
The improvement, however, has been accompanied by record levels of spending. Incentive spending is projected to reach $4,159 (up 6% or $246), the highest level ever for the third quarter and just $28 short of the all-time quarter high set in Q4 2017. The increase is being driven by the ongoing sell-down of old model-year vehicles which account for more than 90% of sales in the quarter and represents the slowest sell-down on record.
Finally, transaction prices are expected to set another record for the quarter, with the average new-vehicle sales price projected to reach $33,321, up $1,229 (4%) from last year. The average price for cars is up 4% to $26,736; light trucks and SUVs are up 3% to $35,725.
Originally posted on Auto Dealer Today
More Industry

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →