Improve insurance customer experience

KEY TAKEAWAYSSAAR forecasted to be up 5.1% year over year to 16.5 million Consumer expenditure is forecasted to rise 9.3% year over yearThe Total Sales ForecastTotal new-vehicle sales for June 2026, including retail and non-retail transactions, are projected to reach 1,363,800, a 3.6% increase year-over-year, according to a joint forecast from JD Power and GlobalData. Reporting the same numbers without adjusting for the number of selling days translates to an increase of 8.0% from 2025. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 16.5 million units, up 0.8 million units from June 2025. Total new-vehicle sales in Q2 2026 are projected to reach 4,226,600 units, an increase of 0.7% from Q2 2025. Total new-vehicle sales for the first half of 2026 are projected to reach 8,245,700 units, an increase of 1.2% from the first half of 2025. The Retail Sales ForecastNew-vehicle retail sales for June 2026 are projected to reach 1,114,700, a 2.7% increase from June 2025. Reporting the same numbers without adjusting for the number of selling days translates to an increase of 7.0% from 2025. The seasonally adjusted annualized rate (SAAR) for retail new-vehicle sales is expected to be 13.7 million units, up 0.5 million units from June 2025. Retail new-vehicle sales in Q2 2026 are projected to reach 3,461,000 units, a decrease of 0.2% from Q2 2025. Retail new-vehicle sales for the first half of 2026 are projected to reach 6,420,100 units, a decrease of 4.1% from the first half of 2025.  Thomas King, president of OEM solutions at JD Power: “Demand for new vehicles is holding firm as the first half of the year wraps up, with total new-vehicle sales for June projected to rise 3.6% year over year and the annualized selling rate reaching 16.5 million units. Stepping back to the broader picture, total new-vehicle sales for the first half of 2026 are projected to increase 1.2% over the first half of 2025. Retail tells a softer story for the first half of 2026, with an expected decrease of 4.1% from the first half of 2025.“Evaluating the year-over-year results requires consideration of what happened a year ago. Last year, consumers were reacting to the perceived risk of higher prices from vehicle tariffs, and the resulting volatility makes simple year-over-year comparisons murky. “Sales in March and April of 2025 were inflated as consumers rushed to showrooms and ‘pulled ahead’ their purchases ahead of anticipated tariffs. By May that pull-ahead had reversed into ‘payback’, with an estimated 63,000 sales pulled out of May, and an additional 12,000 sales pulled out of June and into the preceding months. This explains the growth in retail sales in June compared to a year ago.“On a full-year basis, the 4.1% decline in retail sales, more than offset by rising sales to fleets, is notable, but not alarming. Supply constraints on several of the best-selling vehicles in the market account for most of the decline. That said, macroeconomic uncertainty, higher fuel prices and persistent affordability challenges present headwinds to new vehicle demand. “Regarding affordability, the cost of financing a new vehicle keeps easing, though not by enough to neutralize the structural affordability pressures weighing on buyers. The average interest rate on new-vehicle loans is expected to fall 0.35 percentage points to 6.66%, the lowest June reading since 2022. However, the average transaction price of a new vehicle has increased to $46,387, an increase of 0.8% from a year ago, while average monthly finance payments have climbed 3.4% to $813, the highest ever for the month of June. A key driver of the higher monthly payment, despite longer loan terms, is lower trade-in equity. Many of the buyers returning to showrooms today purchased when prices were at their peak several years ago when inventory was scarce. This is manifesting itself as more buyers carrying negative equity on their trade-in. A total of 29.5% of trade-ins had negative equity in June, up 1.4 percentage points from a year ago. “Manufacturers are leaning harder on discounts to keep buyers in the market. Average incentive spending per vehicle is trending towards $3,217, a 12.7% increase from a year ago. Part of that jump reflects tariff dynamics last year, since several OEMs made unseasonal pullbacks in incentive spending last June as they cut discounts precautionarily to offset tariff costs. Incentives as a percentage of MSRP are expected to hit 6.2% in June, up 0.6 percentage points from June 2025. For non‑EVs, average incentive spending per vehicle is trending towards $2,970, an 18.6% increase from a year ago. Incentive spending on EVs remains materially higher, expected to reach $9,824 per unit, up 3.1% from last year, which continues to underscore the role of discounting in supporting demand for electric vehicles.”Consumers are using longer loan terms to manage monthly payment affordability. Accordingly, 13.6% of loans now have terms of 84 months or longer, to help fill in part of the affordability gap. Retail sales volume growth with slightly higher transaction prices means that total retail consumer expenditure is projected to rise to $49.4 billion, an increase of $4.2 billion from June 2025.  The combination of elevated fuel prices and increased availability of vehicles with hybrid powertrains is driving a shift in the sales mix. Hybrid share of retail sales has climbed to 16.0%, up 2.3 percentage points, while EV share has softened to 7.4% following the elimination of federal EV credits. Global Sales Outlook David Oakley, manager, Americas vehicle sales forecasts at GlobalData:“May global light-vehicle sales are estimated to have declined 4.0% year over year to 7.2 million units. As has become a recurring theme in recent months, growth in some markets – notably India and Brazil – was more than offset by losses in China. The selling rate for May was estimated at 89.3 million units, up from 88.6 million units in April. “The Chinese market continued to slide in May, with sales falling by 21% year over year, almost matching the year-to-date performance of a 21.5% year over year decline. The slow implementation of the new trade-in subsidy, along with price normalization as the government has stepped in to prevent price wars, has caused sales to slow markedly, even as China increases exports around the world. On the other hand, volumes in India are estimated to have grown by 25.9% year over year in May, as lower taxes and strong consumer sentiment boosted demand. Western Europe also delivered a year over year gain in May, of 2.5%, thanks to accelerating BEV adoption. “June sales are expected to grow 3.0% from June 2025, to reach 7.9 million units. This would translate to a selling rate of 93.9 million units, up by 0.9% year over year. Although China is likely to see another year over year decline in June, this could be overcome by further growth in India, Japan, North America and Brazil. “Our forecast for total global sales in 2026 has been revised down to 90.5 million units, compared to an outlook of 91.1 million units a month ago. This forecast would represent a 1.9% year over year decline, as relative weakness in China, along with headwinds from economic and trade factors, drag down the global industry.” Media Relations ContactsJoe LaMuraglia, JD Power; East Coast; 714-621-6224; [email protected]  John Roderick; East Coast; 631-584-2200; [email protected] About JD PowerJD Power is a proven leader in business-critical data and intelligence to drive auto-related decisions with confidence and clarity. By leveraging unmatched proprietary data, advanced analytics and deep industry expertise, JD Power fuels original equipment manufacturers, retailers, lenders, insurers and partners to enhance their performance.Since 1968, JD Power has delivered incisive guidance and intelligence about customer interactions with brands and products. To learn more about the company’s business offerings, visit JDPower.com.About GlobalData: https://www.globaldata.com/

What percentage of Europe’s new light vehicle market will electric vehicles (EVs) account for this year? Autovista24 editor Tom Geggus and special content editor Phil Curry discuss EV Volumes’ forecast in the Automotive Update podcast. This episode unpacks the latest update from EV Volumes’ forecasting team. Listen now for key insights into new EV sales […]

RBC Ranks Highest in Banking Advice and Financial Health Support; CIBC Ranks Highest in Credit Card Financial Health Support