A line of unsold 2024 Atlas sports-utility vehicles sits at a Volkswagen dealership Sunday, March 17, 2024, in Denver. Most automakers who sell new vehicles in the U.S. report first-quarter sales numbers on Tuesday, April 2, 2024. Sales are expected to be surprisingly strong despite high interest rates. DETROIT — New vehicle sales in the U.S. rose nearly 5% from January through March, as buyers stayed in the market despite high interest rates.
The company said automaker discounts in March were two-thirds higher than a year ago, around $2,800. That includes increased availability of lease deals. J.D. Power expected leases to account for almost a quarter of retail sales last month, up from 19.6% in March of last year. Cox Automotive Chief Economist Jonathan Smoke cautioned it appears the industry has already hit its spring sales peak as buyers expect the Federal Reserve
Most automakers reported strong year-over-year sales increases from January through March, but General Motors, Stellantis, Kia and Tesla all reported declines.