U.S. light-vehicle sales rose 6% in October, with a SAAR of 16.5 million. While the increase in vehicle sales is great news for the industry, even better news is the increase in revenue from those sales as consumers shift to larger, pricier vehicles. American consumers are on pace to spend more than $400 billion buying new vehicles this year, for the first time ever. That’s nearly 80% more than just five years ago, during the recession, according to J.D. Power and Associates. Analysts predict that spending is likely to rise even more next year, as lower gasoline prices accelerate a shift from small, fuel-efficient sedans to more expensive crossovers and SUVs.
Used Vehicle Sales Static in October, But Boost Expected Early In 2015
According to CNW Research, 3.16 million used vehicles were sold in October, virtually unchanged from October 2013. Franchised dealers sold 1.21 million used vehicles in October, a gain of 2.2% year-over-year. Through ten months, franchised dealers have sold 13.21 million vehicles, compared to 13.22million a year ago.
CNW predicts that used vehicle sales will be strong in the first quarter of 2015, because the number of used vehicle shoppers jumped nearly 7% from September to October of this year, even though sales were static. Those shoppers are likely two-or-three months away from actually making a purchase.