Kelley Blue Book recently released a report of what it expects new car sales to come in at once March has ended.
According to KBB, new car sales are expected to hit a seasonally adjusted annual rate of 15.2 million in March, up 3.2 percent on a year-over-year comparison. KBB noted that when adjusting for the fewer amount of selling days in March, sales actually improved 7 percent on a year-over-year comparison. With that being said, the amount of units sold is expected to hit 1,450,000, accounting for the highest sales total since August 2007.
"Sales will be boosted by record low interest rates and a slowly improving job market, which recently saw the unemployment rate and new unemployment claims fall to five-year lows," said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book. "In addition, with attractive financing and ample inventory to choose from, many people receiving tax refunds will use their returns toward a down payment on a new vehicle this month."
As for which brands are expected to perform the best in March, KBB predicts Volkswagen will show a 9.6 percent gain on a year-over-year comparison and Honda will show an 8.7 percent gain during that same period of time. Honda sales will primarily be buoyed by the popularity of the Accord, as sales are up 51 percent in the first two months of this year compared to the same period of time last year.
Truck sales up nearly 15 percent
Truck sales are also expected to show considerable gains by the end of March. KBB expects that full size pickup truck sales will increase 14.9 percent in March on a year-over-year comparison.
"Although incentives have helped boost truck sales in recent months, a steady climb in housing starts will continue to support the truck market even if incentive spending declines," Gutierrez added. "Incentives aren't expected to come down anytime soon, especially with a more than 90-day supply of Ford F-Series, Chevrolet Silverado and Ram 1500 pickups available for sale nationwide. With supply still ample and incentives plentiful, consumers looking for a new pickup truck should not hesitate to pull the trigger."
The 2013 Ram 1500 will continue to be a favorite among truck buyers. Earlier this year the truck was named the 2013 North American Truck/Utility of the Year.