Recent reports are showing automotive industry sales recovered after Hurricane Sandy struck the East Coast at the end of October.
A recent Kelley Blue Book report indicated that November is expected to come in at a 14.7 million seasonally adjusted annual rate, up from the 14.3 million unit pace posted last month as sales were impacted from the super storm. Experts believe the worst of the impact from Sandy are behind us.
"Kelley Blue Book anticipates buyers that were forced to delay a purchase due to the onset of the storm will continue to return to market during the next several weeks," said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book. "Additional demand will come from residents that unfortunately had a vehicle destroyed. These consumers will likely help make the last weekend of November a strong one for the automakers with demand for replacement vehicles continuing into December."
The sales volume significantly declined in New Jersey as it was one of the states hit hardest by the storm. New Jersey's market accounts for approximately 3-5 percent of all auto sales in the United States. Vehicle sales in New York, which was also hit hard by Sandy, showed a similar pattern. Individuals are encouraged to equip their cars as best they can for adverse weather, especially with winter's worst on the horizon. Husky Liners® vehicle floor mats will keep a car's interior as fresh as possible with the impending bad weather.
Because of overall pent-up demand in the auto industry and many individuals needing cars replaced after their current vehicles were destroyed by Sandy, experts anticipate strong November sales as the result.
"Although the industry can assume that a significant percentage of consumers seeking replacement vehicles will shop used, many automakers are offering residents of FEMA-designated storm-damaged areas additional cash incentives to entice consumers to shop for new cars," Gutierrez added. "Nissan, Mazda, Ford and Chrysler are among the manufacturers offering incentives such as $500 in additional bonus cash, employee pricing or special finance deals to those in the market for a replacement vehicle."
In a separate release, TrueCar, the authority on car pricing information, trends and forecasts, expects the average transaction price for light vehicles in November to come in at $30,832, up $335 on a year-over-year comparison and up $346 on a month-over-month comparison.