Vehicles sales are expected to be strong by the end of the month, and the automotive industry is poised for a strong year in 2013.
According to TrueCar.com, new light vehicle sales are expected to reach 1,464,214 units in August, accounting for a 14.4 percent increase on a year-over-year comparison and an 11.8 percent increase on a month-over-month comparison. The report noted that this forecast translates to a Seasonally Adjust Annualize Rate of 15.75 million new vehicle sales, up 9 percent from a year before and down less than 1 percent from a month before.
Retail sales are expected to jump 10.5 percent in August on year-over-year comparison and 11.7 percent on a month-over-month comparison. At the same time, even while new vehicle sales are expected to come in at a strong pace in August, so too are used vehicle sales. According to the report, used car sales are expected to hit 3,451,179 units by the end of the month, triple the amount of new cars sold.
"New vehicle sales defied their typical strong correlation with Wall Street in August and continued to post a healthy increase despite the lackluster performance in financial markets," said Jesse Toprak, senior analyst for TrueCar.com. "Small SUVs became the fastest growing segment this month, with this very functional and affordable vehicle category now making up 15.5 percent of all sales, up from 13.5 percent from a year ago."
According to the TrueCar report, incentive spending is down in August. While dealers are looking to clear out their lots of 2013 models, the fact that demand is so strong enables them not to have to offer high incentives for vehicles.
"Despite the push to sell down older models, incentive spending has declined for its second consecutive month," said Kristen Andersson, analyst at TrueCar.com. "Chrysler hit its lowest level of incentive spending since May 2011 while also seeing double-digit sales increases, as their strong product lineup continues to resonate with buyers. Honda has also slashed its incentive spending, which is down almost 40 percent from last year."
J.D. Power and LMC agree
According to a separate report released jointly by J.D. Power and LMC Automotive, TrueCar.com is right to expect strong vehicle sales by the end of the month. The report showed that total vehicle sales are expected to hit 1.27 million units in August, up 12 percent on a year-over-year comparison.
"The industry as a whole continues to experience a robust improvement in demand, and our forecast for August is looking to be the best month for retail sales that we've seen in the past seven years," said John Humphrey, senior vice president of the global automotive practice at J.D. Power. "Moreover, this strong selling environment is occurring when consumers are spending more on new vehicles than any month on record, which is a further indication of the underlying strength of the sector."
As the automotive industry is continuing to see strong new vehicle sales, those who have made a purchase or are planning to do so in the near future, should look into how Husky Liners® vehicle floor mats can protect their vehicle. These liners are ideal for any car, new or used, and will protect the interior of vehicle from taking on damage. Spills will stay on the liner for an easy clean, and best of all, there will be no more stains a car's carpet.