New vehicle retail sales are expected to decline in April, according to a forecast developed by J.D. Power and LMC Automotive.
Retail sales will reach approximately 1,041,600 units, which represents a 5.3% decrease from the same time last year, according to forecasts.
"From an overall volume perspective, the industry continues to show signs of softness with April, representing the 10th straight month of year-over-year retail sales declines," said Thomas King, SVP of the Data and Analytics division at J.D. power. "Yet we continue to see strength in other key industry health metrics, with a large increase in average transaction prices and lower manufacturer incentives."
New-vehicle prices for April are on pace to reach the highest point they've ever reached: $33,695, representing a 4% increase from a year ago.
Even with these higher prices, incentive spend is expected to see a year-over-year decline. The average incentive spend in April is expected to be $3,408, $300 less year-over-year, according to J.D. Power.
Demand for vehicles costing $40,000 and higher in the new-vehicle front is up 7%. At the same time, demand for vehicles costing less than $20,000 in the new-vehicle market is down 25% year-over-year.
Many of the buyers who would have purchased a vehicle under $20,000 in the new-vehicle market appear to be looking at the used-vehicle market.