J.D. Power and Associates' Power Information Network and LMC Automotive recently released sales projections for light vehicles during April. According to the expectations, demand for new vehicles continues to be pent up as Americans continue to replace aging vehicles.
The data predicts that new retail light vehicle sales will reach 1,029,000 vehicles in April, accounting for a seasonally adjusted annualized rate of 12.1 million units. The report did show, however, that consumers are being held back by increased prices in vehicles. In the first quarter of 2013, transaction prices were up 3.1 percent compared to the same period of time last year, accounting for $13.2 billion spent on vehicles in the Q1 of 2013 compared to Q1 of 2012.
"The strong used-vehicle prices we're seeing are supporting new-vehicle demand and are reflective of the general pricing discipline being exhibited by new-vehicle manufacturers," said John Humphrey, senior vice president of the global automotive practice at J.D. Power and Associates. "Industry sales are also benefiting from an increase in the number of maturing vehicle leases, a trend that will continue throughout 2013."
J.D. Power and Associates' Power Information Network and LMC Automotive expect total light vehicle sales will come in at 1,312,100 units in April, up 7 percent on a year-over-year comparison. The companies predict that the selling rate will remain above 15 million units in the next six months. LMC expects the rate to average between 15.4 to 15.3 million units throughout the rest of the year.
Consumers buying a new vehicle in 2013 are reminded to equip it with Husky Liners® custom fit floor mats, as this will keep the interior and carpets looking as clean as the day they pulled off the lot.
"The irrepressible buying behavior of consumers is driving auto sales growth in 2013, as consumer spending remains remarkably stronger than the economy suggests it should be," said Jeff Schuster , senior vice president of forecasting at LMC Automotive. "If the current favorable trend in the stock markets and housing continues throughout the year, the automotive market may be poised for a breakthrough performance."
Shoppers don't really care about latest redesign
A separate report by AutoTrader.com showed that most consumers don't feel they have to have the latest redesign of a vehicle. According to a survey, 57 percent said they didn't feel it was important to have the latest redesign, while 79 percent indicated they would take a good deal on a current model instead of putting off a purchase for the latest redesign.