We all know that it has been a rough several years for the auto industry. The recession had many people cutting back by keeping their old cars, trucks, and SUVs longer, delaying purchases and negatively impacting auto sales. The industry has been seeing positive trends, and this year may finally get us over the hump. The numbers won't be official until some time next week, but numerous reports are saying that August is on track to be the best month yet since 2006! Projected retail sales are said to be close to 1.27 million units. In addition, the past year has already been fairly strong with 9.13 million new vehicle sales occurring through July 2013. Sales for the year could be as high as 16 million units, according to some projections, though this may require top makes and models to ramp up production to meet demand. Ford, Hyundai, and Subaru are all experiencing low supplies of some of their popular vehicles.
If the August numbers are as high as predicted, auto sales will be 12% higher than last August. In addition, as average car prices climb higher, the total spent on the estimated 1.27 million vehicles is much higher too. The average price of new vehicles this year topped $31,000; multiply this by 1.27 million vehicles and you get over 39 billion in new auto sales. This number may in fact break the record for single month auto revenue, even if the number of vehicles does not quite hit the record. JD Power explains that these great sales numbers are in part driven by the quirk of our calendar system. This year, August has five weekends, rather than the typical four. Also, factor in that Labor Day Weekend starts in August this year, and you have the perfect combination of events for great August sales numbers.
Are you part of the auto sales boom? Are you one of the 1.27 million who bought a new vehicle this past month or year? Please let us know about your experience in the comments!