February vehicle sales are heading for another solid month despite headwinds such as economic turbulence created by gridlock in Washington D.C. and a spike in gasoline prices, according to those who track trends on the showroom floor.
The surge in demand is coming despite an ongoing cutback in incentives by automotive manufacturers. In fact, buyers are spending significantly more to drove off the dealer lot than they did just a year ago, industry watchers report.
“All signs of the industry’s health are positive right now,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power and Associates, or JDPA. “Average transaction prices are up, incentives are stable, leasing is at a healthy level and newly redesigned models continue to make an impact on the marketplace.”