New Cars: Why Not Report Unit Sales AND Prices?
Last week Autodata reported 994,721 total light vehicle sales for November, which was a 13.9% annual increase from November last year (873,323 units). Separately, TrueCar.com reported that the average sales price for a new car reached a record high in November of $30,317 (average transaction price), an increase of 4% compared to a year earlier ($29,154, see chart).
In that case, the total sales volume for new vehicles increased year-over-year in November by 18.44%, from $25.46 billion last year to $30.15 billion this year, and the total sales volume increase was even more impressive than the 13.9% increase in unit sales. Now only did American consumers buy 121,398 more cars last month compared to November 2010, but they were also willing to pay 4% more on average, or $1,163 more per vehicle. That translated into an increase in sales volume of $5 billion.
When existing and new home sales are reported, both unit sales, and average and/or median sales prices are reported. Maybe car sales should be reported the same way, to get a more complete picture of vehicle sales?