Wednesday, September 4, 2013
Car sales surge back to pre-recession levels
September 4, 2013: 12:54 PM ET
Car buyers were back in dealerships in force in August.
The fact that it was individual buyers, rather than government and
corporate fleets, dominating the sales figures is especially good news
for the industry. Individual sales are typically at higher prices than
those to fleets, such as rental car companies.
Michelle Krebs, senior analyst for Edmunds.com, said it was the lowest percentage of August fleet sales in the more than six years her firm has been tracking such sales.
"The sales are clearly on the strength of individual car buyers going to their dealers and buying a car," she said.
Related: Toyota recalls 369,000 vehicles
Krebs and other experts point to a number of factors driving the strong
sales, including greater access to low-cost car loans, an improving employment situation, greater household wealth driven by rising home prices
and year-over-year gains in stocks. All of those factors helped feed
pent-up demand by consumers no longer willing to postpone a new car
purchase.
"All those people who waited are now buying cars. Their cars are just getting too old, they've had with postponing a purchase," said Karl Brauer, senior analyst for Kelley Blue Book. "Even if the economy is still only improving slowly, there's enough confidence for them to go and spend money."
Pick-up truck sales were particularly strong, helped by a rebound in home building, which can prompt purchases by contractors and construction workers.
http://money.cnn.com/2013/09/04/news/companies/car-sales/index.html
Car buyers were back in dealerships in force in August.
NEW YORK (CNNMoney)
Individual car buyers flocked to dealerships in August as all of the nation's top automakers reported their strongest sales in years.
U.S. automakers General Motors (GM, Fortune 500), Ford Motor (F, Fortune 500), Chrysler Group all reported double-digit percentage increases in sales in August. Japanese rivals Toyota Motor (TM) and Nissan (NSANY) also reported large sales gains, putting the industry on pace for a 16-million annual sales rate for the first time since before the recession started in late 2007.Michelle Krebs, senior analyst for Edmunds.com, said it was the lowest percentage of August fleet sales in the more than six years her firm has been tracking such sales.
"The sales are clearly on the strength of individual car buyers going to their dealers and buying a car," she said.
Related: Toyota recalls 369,000 vehicles
"All those people who waited are now buying cars. Their cars are just getting too old, they've had with postponing a purchase," said Karl Brauer, senior analyst for Kelley Blue Book. "Even if the economy is still only improving slowly, there's enough confidence for them to go and spend money."
Pick-up truck sales were particularly strong, helped by a rebound in home building, which can prompt purchases by contractors and construction workers.
http://money.cnn.com/2013/09/04/news/companies/car-sales/index.html
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