According to a joint forecast from J.D. Power and GlobalData, consumers are projected to spend a record setting $55.8 billion on new vehicles in April. Total new-vehicle sales are projected to exceed 1.5 million, a 10.5 percent increase from last year.
“April results are dominated by the prospect of future vehicle price increases due to tariffs,” said Thomas King, president of the data and analytics division at J.D. Power. “Beginning at the end of March, and continuing through April, consumers have been accelerating their vehicle purchases under the expectation that prices will rise soon. In fact, an extra 83,000 sales in March and 139,000 in April have occurred due to accelerated vehicle purchases.”
Here’s an in-depth look at the key insights driving this month’s surge in vehicle sales.
Total Vehicle Sales See Double-Digit Growth
April saw a 10.5 percent increase in total new-vehicle sales compared to 2024, with total sales between retail and non-retail hitting 1,519,900. However, without adjusting for the additional selling day in 2025, the total volume is actually a 14.9 percent increase. The seasonally adjusted annualized rate (SAAR) jumped to 17.9 million units, an increase of 1.9 million compared to last April. Trucks and SUVs represented 82.1 percent of new-vehicle retail sales, reflecting a 2.5 percent increase from the previous year.
Total retail sales reached 1,284,800 units, a 14.7 percent increase year over year. Again, without adjusting for the additional selling day, retail sales surged by an impressive 19.3 percent compared to 2024. It is still a slight decline from March’s 1.35 million retail units sold, but that did not impact total earnings.
Impact on Consumer Spending
Average retail transaction prices for new vehicles climbed to $45,764, up $887 from April 2024 and $975 from the previous month. It was a profitable month for dealers as total aggregate retailer profit from new vehicles is projected to be $3.1 billion, up 18.8 percent from last year.
“The strong sales pace, combined with high average transaction prices mean consumers will spend more money buying new vehicles this month than any other April on record—and the third highest of any month on record,” said King. “Consumers are on track to spend nearly $55.8 billion on new vehicles this month—21.2 percent higher than a year ago.”
Retailers also offered slightly smaller discounts amidst the rush to showroom floors, resulting in those increased dealer profits. Total retailer profit per unit hit $2,525. This figure was $361 higher than March 2025. Manufacturer incentive spending per vehicle rose to $2,808, a year-over-year increase of $209, but a decrease of $260 from March.
Higher vehicle prices drove monthly finance payments to a new record, with the average payment climbing to $742, up $19 compared to April 2024. The average interest rate on new-vehicle loans decreased slightly to 6.8 percent, a small decline of 18 basis points from last year.
Rising Interest in Electric Vehicles
Electric vehicles (EVs) continued to gain traction, claiming 8.7 percent of retail sales in April, a modest increase from 2024. Hybrids also saw growth, accounting for 12.6 percent of retail sales, a 2.9 percent increase year over year. Consumer choice in EVs has grown steadily, with over 60 models now available on the market. This has led to better market coverage as EV retail share reached 9.5 percent during Q1 2025, a 1.5 percent increase over 2024.
“As the auto industry navigates the potential effects of tariffs, the $7,500 federal EV tax incentive remains in place—for now,” said Elizabeth Krear, vice president of the electric vehicle practice at J.D. Power. “This credit, and a myriad of incentives offered by states, local governments and utilities, give EVs a distinct value proposition right now. Coupled with lower operating costs make the present time a sweet spot, one might say, for those looking to buy an electric vehicle.”
Outlook
While April’s sales surge displayed robust growth, there is growing concern about the sustainability of these trends. Much of the increase in sales can be attributed to consumers rushing to buy before tariffs impact prices. If price increases tied to tariffs take effect, it will impact future sales numbers.
“The strong volume and value of vehicles sold in April will be difficult for the industry to maintain,” said King. “The potential for price increases in the coming months is meaningful and, if realized, will reduce the industry’s sales pace. Furthermore, the large number of buyers who purchased in late March and April instead of later in the year will create a further sales headwind in the coming months.”
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