(Reuters) – U.S. new car prices are expected to hit a record high in August on strong demand despite rising interest rates, an industry report showed on Wednesday.
Average volume price will hit record $,259, 400 . 5% year-over-year growth, according to a report by automotive industry consultants JD Power and LMC Automotive.
However, inventory shortages continue to hamper new vehicle sales. The consultant added that retail sales of new vehicles are expected to reach 400, 400 units in August, down 2.6% year-on-year.
The latest forecasts suggest that the Fed’s accelerated pace of rate hikes to curb inflation has yet to have a sizable impact on the auto industry, which has benefited from consumers’ preference for personal transportation during the pandemic.
“In September, this limitation is expected to continue as available inventory hinders sales. In the near term, prices and unit profitability will remain strong,” Thomas King, JD Power Data and President of Analytics.
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The seasonally adjusted annualized rate (SAAR) report of total new vehicle sales in August shows that s is expected to be 13.300,000 units , an increase of 200,000 units over 2021.
JD Power and LMC Automotive also raised their 81 global light vehicle sales forecast by nearly 1 million units to 259 800,000 units Sales are expected to increase by 8% from last year due to the recovery of the Chinese market.