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Posts Tagged ‘new vehicle sales’

Automotive Subprime Lending Down in Q1

Banks, finance companies cut back 9.5% in first quarter.

by on May.08, 2018

Banks and finance companies are tightening their belts when it comes to lending to subprime buyers.

With predictions about new vehicle sales for 2018 hovering at or just below 17 million units, it appears that banks and finance companies may be inadvertently impacting that sales total with their current lending practices.

According to Equifax, subprime lending is down nearly double digits through the first quarter of the year.

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Reports show that 386,500 auto loans and leases have been originated YTD to consumers with a credit score below 620, which is generally considered subprime. This is a 9.5% decrease from the year-ago period.  (more…)

US Autos Shake Winter Sales Doldrums in March

Sport-ute lead the way to spring sales jump.

by on Apr.03, 2018

Americans went out and bought new cars and especially sport-utes in March.

The auto industry broke out of its winter doldrums during March as General Motors, Ford, Fiat Chrysler, Toyota and Volkswagen all reported sales increases and for now set to rest fears that sales of new vehicles were beginning to fade.

GM, which also announced it would no longer report sales on monthly basis, reported its car, crossover and truck deliveries in the United States in March increased 16% year over year, driven by Buick’s best March since 2004, Chevrolet’s best March since 2007 and Cadillac’s best March since 2014. It was GMC’s best March in the brand’s history.

Sales News!

“March was an exceptional month for us. A growing economy and strong new products helped us execute a very successful plan to conquest customers from other brands,” said Kurt McNeil, U.S. vice president, Sales Operations. “Once customers purchase a GM product, they tend to stay in the family as we deliver an award-winning ownership experience that is hard to beat.” (more…)

Analysts Slowly Raising Yellow Flags

Possibility of trade wars plants seed of doubt about auto sales.

by on Mar.30, 2018

The auto industry is expecting a strong sales year in 2018, but analysts warn a trade war could derail that.

The atmosphere around the New York International Auto Show was fizzy and upbeat with the industry firmly believing it’s heading for another strong year in 2018, but there are some caution flags flying as well.

Nariman Behravesh, chief economist for IHS Markit, told the annual Auto Forum co-sponsored by National Automotive Dealers Association and J.D. Power that the outlook for growth remains strong and stable and the industry should expect to benefit the improvements in consumer sentiment that the economy has spawned.

Industry News!

However, anxiety about a trade war is perhaps the biggest worry on the horizon, added Behravesh, who said he hopes battles about trade could be avoided. “Tariffs hurt us more than they do the Chinese,” he said. (more…)

Long-Term Outlook for US Auto Sales — Stable

Only a major event would impact sales.

by on Mar.20, 2018

New vehicle sales are expected to stabilize in the 16.8 million to 17 million unit range.

Barring a sudden shock such as a financial crisis like the one in 2008 or another foreseen disruption of the economy in the U.S. or other parts of the world, the auto industry appears headed for a long period of stability, according to an updated forecast by IHS Markit.

Sales appear to have reached a very sustainable plateau quite similar to the that started in the early 1990s and survived the bursting of the “Dot.com” bubble and 9/11, Peter Nagle, an IHS analyst noted in a briefing for reporters in Detroit. The long period of steady, stable sales could stretch out to 2025.

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Sales in the U.S. market have been slowing since the middle of 2016, he added. “We’re entering a replacement cycle but at a very level even as the plateau tilts slightly downward.  IHS expects total sales in the U.S. to reach 17 million this year and tail off to 16.8 million in 2019. (more…)

Auto Sales Falter in February

Audi, Toyota and VW provide bright spots for dreary month.

by on Mar.01, 2018

Volkswagen enjoyed a 6% sales jump in last month while most other makers struggled.

New vehicle sales stalled in February as General Motors, Ford Motor Co., Fiat Chrysler Automobiles N.V. and Nissan all reported sales declines, but Toyota and Volkswagen managed to post increases taking some of the sting out of figures.

Volkswagen said its sales increased by 6% while Toyota posted an increase of 4.5%. “We’re off to an outstanding start for the year,” said Jack Hollis, the head of the Toyota Division sales. Not surprisingly, Audi also continued its run of positive months with a 12% February jump.

News Now!

“Market softness spread beyond cars in February to other segments of the market,” said Michelle Krebs, executive analyst, AutoTrader.com. (more…)

New Vehicle Sales Expected to Drop in February

Only Toyota, VW and Audi expected to see small increases.

by on Feb.23, 2018

Sluggish sales in the U.S. are expected to continue into February.

Carmakers are quick to point out that one month of sales figures don’t represent a trend, but analysts are now predicting that new vehicle sales are poised to slide again in February, following the drop in January.

Edmunds, a leading car shopping and information platform, is predicting 1.27 million new cars and trucks will be sold in the U.S. this month for an estimated seasonally adjusted annual rate or SAAR of 16.8 million.

Sales News!

The figures reflects a 10.8% increase in sales compared with last month, but a 4.1% decrease from February 2017, Edmunds said. (more…)

Global Auto Sales Set to Hit Record in 2018

Industry coming tantalizing close to 100 million mark.

by on Feb.16, 2018

Despite sluggish sales in the U.S. and China, global auto sales are expected to set a new record in 2018.

Global auto sales are expected to hit an all-time record in 2018 of 97.3 million vehicles, according to a new forecast by LMC Automotive.

That 2.1% jump over 2017 would come despite a weak market in North America, as well as softening growth in what is now the world’s largest automotive market, China, LMC researchers said during a media conference call.

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The U.S., in particular, posted its first annual decline in vehicle sales since the market hit bottom in 2010, and it remains unclear what will happen in 2018, LMC Managing Director Pete Kelly cautioning that it “could go either way.” (more…)

Want a Black Friday Deal? Go to a Dealership, Not a Mall

Save thousands instead of hundreds and sleep in!

by on Nov.22, 2017

Automakers are looking to get your money into the pockets of dealers rather than retails at the mall on Black Friday.

If you’ve watched television in the last two weeks, you know that some shoppers are sleeping in on Black Friday and still saving big money — on new cars, trucks and utility vehicles.

Most shoppers are headed to malls across America the day after Thanksgiving, but automakers are providing new vehicle buyers plenty of reasons to head to the nearest dealership. In fact, the four-day Thanksgiving weekend is a holiday makers target.

News You Can Trust!

“Black Friday is certainly a great time to go car shopping,” Jennifer Newman, editor-in-chief of Cars.com, said in a statement. (more…)

New Car Sales Expected to be Strong in October

Incentives on the rise, analysts note.

by on Oct.26, 2017

New vehicle sales in the U.S. are expected to be healthy in October despite a small drop.

Sales of new vehicles seem to be on the Goldilocks track in October – not too hot and not too cold – with a modest decline from last month, according to new reports from analysts, but a healthy seasonally adjusted sales rate of more than 17 million units.

Edmunds, the car-buying site, estimates the SAAR will 17.6 million, reflecting a 13.3% drop in sales from September 2017 and a 3.5% decrease from October 2016. Following strong September results, October 2017 is poised to keep up some of the momentum.

News You Can Trust!

Analysts for Kelley Blue Book estimate that new-car sales will drop 2% year-over-year, sales but are expected to be relatively strong for the industry. Some of the strength can be attributed to replacement demand that continues in Texas and Florida, but perhaps more importantly, higher incentive spend is playing a role, according to KBB — a sentiment shared by others.  (more…)

Auto Industry Survives Storm as August Sales Hold Steady

Hurricane Harvey takes bite out predicted sales.

by on Sep.01, 2017

August new vehicle sales remained steady despite Hurricane Harvey's impact on Texas and Louisiana. Photo credit: Brendan Strong

With the rain from Hurricane Harvey still flooding into dealerships in Texas and Louisiana, new car sales held steady in August as carmakers and analysts assessed the impact of the massive storm.

Analysts initially predicted that August sales would rise as much as 2%, making it the first monthly year-over-year increase in 2017. However, Harvey took out more than a week of sales in Texas, one of the largest markets in the U.S.

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General Motors, Toyota and Audi all reported sales increases for the month, while Ford, Nissan and Fiat Chrysler N.V. said sales dropped.  (more…)