Car Sales Likely to Make Major Jump in March
Mar 28th, 2012 @ 8:42 PM by Amber Nelson
All the numbers are pointing toward a very strong month of car sales for the U.S. in March, according to auto data company TrueCar.com, perhaps even the biggest increase since August 2007, almost five years.
TrueCar.com is predicting that sales of new cars will grow 14 percent in March from the previous year to a seasonally adjusted annual sales rate (SAAR) of 14.5 million.
“Due to stronger than expected recovery, we’ve increased our sales forecast another 3.6 percent, from 14.0 million unit sales to 14.5 million unit sales in 2012,” said Jesse Toprak, vice president of market intelligence for TrueCar.com as quoted in a Forbes article.
The jump in sales is likely to be led by Volkswagen and the Chrysler Group with increase of roughly 33 and 30 percent from March 2011figures, respectively. GM and Hyundai/Kia sales are also expected to rise substantially, with GM sales likely to jump about 20 percent and Hyundai/Kia should rise 19 percent in March from the year before. Toyota, Honda, Nissan, and Ford are all expected to post sales gains for the month as well.
“We are looking at a record breaking month for many manufacturers in March with Hyundai, Nissan and Volkswagen expected to have their highest unit sales ever in the U.S.,” said Toprak as quoted in a Wall Street Journal blog post.
The likely jump in sales is a result of generally better economic conditions and great lending supply, as well as dealer incentives. Said Kristen Andersson, senior analyst at TrueCar in a Fox Business article, said:
“Consumers who wanted a new vehicle, but were cautiously sitting on the sidelines, are entering the market and feeling more confident about buying. Automakers have hit the sweet spot this month with lowered incentives and double digit sales increases, which signifies the underlying strength in consumer demand.”
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.