August Auto Sales Best Since 2003
|   Sunday, September 21, 2014
Auto dealers used heavy discounting and consumers contributed a buying splurge over the Labor Day holiday weekend to boost August car sales to their best level since 2003, easily beating analysts forecasts.

According to Reuters, all major carmakers reported year-to-year sales gains. General Motors was the lone exception as its sales fell slightly. August's results were the best the industry has posted since 2003 when 1.63 million vehicles were sold.
On an annualized basis August sales were 17.53 million, the best since 2006, according to Autodata, a major supply of automotive data. This figure was well above the analysts' forecasts of 1 6.6 million sales.

The August sales rate and overall sales for the month showed brisk business not only for cars, but also for the rest of the economy. Car sales are a bellwether for the rest of the retail sector because vehicles comprise 20 percent of all retail spending.

A four-year low in gasoline prices help sales jump up in August. For example, the Chrysler Group, a subsidiary of Fiat, posted double-digit sales gains. Sales of full-side pickups and SUVs were up in August. The only negative here was Ford reporting a drop-off in sales of its F-150 pickups. The full-sized pickup truck will undergo a major change for 2015 as Ford delivers a new aluminum-bodied version. Some speculated the buyers were waiting for new pickup's appearance at dealerships before they purchased of the popular pickup.

GM's sales for August were off 1.2 percent, while Toyota sales were up 6.3 percent. Ford sales were up 0.4 percent, while Chrysler sales were up 20 percent and Nissan sales were up 11.5 percent. Honda sales held their own with a 0.4 percent increase, while Hyundai sales were up 5.5 percent. Hyundai sales were up 5.5 percent. (Hyundai sales figure includes Kia numbers. Kia is part of Hyundai.)

On an annualized basis, sales were at a rate of 17.53 million vehicles for the model year 2014. This is the best number since June 2006.

New-car sales incentives rose to $2,772 per car, said TrueCar.com as all major manufacturers, and all major manufacturers, but Nissan, increased their new-car discounts as well. Edmunds.com, a car information provider, said that a higher percentage of dealers offering zero percent financing on dealer-financed loans, also enhanced August sales.

The average transaction price in August, noted KBB.com (Kelly Blue Book) was $32,495 due to a demand shift to pickups and SUV, more profitable vehicles. The demand shift surprised dealers and it forced manufacturers to increase discounts on sedans. Sedan sales were slowed by the shift.
PHOTO GALLERY
Comments:
Name required * Email required Email not valid *
Comment required *

Latest news
Sunday, August 19, 2018 10:30:31 Nissan is present at the Detroit Auto Show with a compact concept SUV called...
Saturday, August 18, 2018 10:25:17 Another Hyundai premiere at the Detroit Auto Show is the new Veloster N,...
Friday, August 17, 2018 10:20:24 The South Koreans from Kia presented at the Auto Show in Detroit the new...
Thursday, August 16, 2018 10:15:59 After a massive promotion campaign, the US subdivision of Hyundai has officially...
Wednesday, August 15, 2018 10:05:55 Acura boasted that the new RDX is 100% made in the United States and is...
Tuesday, August 14, 2018 09:54:10 At the core of the new VW Jetta is the MQB platform, which is already used...
Tuesday, August 14, 2018 09:50:38 General Motors held the world premiere for the new generation Chevrolet...
Monday, August 13, 2018 09:45:39 The Ram Trucks brand, currently belonging to Fiat Chrysler Automobiles,...
Sunday, August 12, 2018 09:39:52 Ford brought the new generation mid-size Ranger pick-up at the Detroit Auto...
Saturday, August 11, 2018 09:34:13 At the Auto Show in Detroit, American car manufacturer Ford celebrates the...