U.S. vehicle retail sales surge to highest levels in 2 years

Highlights from Cox Automotive’s Auto Market Report shows December 2024 retail vehicle sales in the United States surpassing 2023 levels, while low-interest rate deals surged to their highest levels in two years.

The data is offered in a video by the company’s Chief Economist Jonathan Smoke, who provides an update on the current state of the auto industry for this last month of the year. “Consumer spending trends were notably volatile in September and October due to hurricanes Helene and Milton,” the update reveals. “However, the Index of Consumer Sentiment saw a 5.6% increase in November, reaching a 3.5-year high post-election, though it has dipped slightly by 0.8% in December.”

Retail sales for both used and new vehicles have shown robust action over the past month, maintaining higher levels compared to 2023. And low-interest rate deals were up a bit in November and in the early part of December. Cox Automotive listed average auto loan rates for used vehicles at 13.76%, and new-vehicle rates at 9.01%.

The supply of new vehicles remains higher, although it has recently seen a dip. And the used vehicle supply is notably lower, year-over-year. The report also shows that retail prices for model year 2021 vehicles experienced a slight decline. 

Some key points to take in include the tightening of new-vehicle supply, which in turn has an impact on availability; and used-vehicle prices are converging, with Cox Automotive noting that retail and wholesale prices are showing minor declines.

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