U.S. automotive sales are predicted to slide slightly in April, however, the overall market remains positive. As the month closes out, new sales forecasts from Cox Automotive predicts a drop in April new-vehicle sales compared to last year. Despite this new data, the automotive services and technology provider predicts the market will remain in recovery mode with new vehicles selling at a healthy pace.

Experts with Cox Automotive predict 2024 will still beat pre-pandemic new vehicle sales with sales volume expected to fall slightly by 2.2 percent as compared with April 2023. Seasonally adjusted figures put the overall new vehicle selling pace at 15.9 million for the year, up 0.2 million over last year's pace and 0.4 million from March, when auto sales for the year reached 15.5 million.

“Since April 2023, the new-vehicle SAAR has experienced some large swings, with an average sales pace in the mid-15 million level,” said Cox Automotive senior economist Charlie Chesbrough. “This month, more volatility in the market is also expected, although the sales pace is anticipated to rise slightly.”

April is a shorter month, and this can have an impact on overall new vehicle sales, Cox Automotive said. The company said that despite lower figures, there will be an increase in the overall sales pace which is predicted to continue into 2024.

April’s final new vehicle sales volume is predicted to fall to 1.34 million units, a 2.2 percent decrease from one year ago and a 6.8 percent decrease from March.

Increased vehicle incentives have also got car buyers looking to make a purchase. In April, vehicle supply was up 46 percent compared to last year. Paired with other aggressive dealer incentives, sales will continue to push upward as the year progresses, according to Cox Automotive.

“Despite high-interest rates and elevated vehicle prices, consumers remain resilient. Sales growth may be sluggish, but growth continues. And we expect these conditions to persist throughout the year,” Chesbrough said.