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A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
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Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.
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Forecasts show that the spring sales season is rising above overriding economic concerns, among them continuously rising car prices, trade tariffs, elevated interest rates, and now a war.
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New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.
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Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.
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February forecast has new-vehicle deliveries still off from last year at this time amid high prices and vanished EV incentives. But J.D. Power sees business picking up from here as automakers target growth.
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The month is set to be off last year, J.D. Power predicts, though its full-year outlook is less gloomy, and dealer profits are up despite the odds.
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The series of sales spikes this year that were inspired by shifting U.S. policies defied the drag of those same changes, according to one early forecast.
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New-vehicle sales are up from last year but show a slow fourth quarter.
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Sales down as automakers adjust strategy after end of tax credits and in face of trade tariffs
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