U.S. automotive sales surged 9% in November to 1.24 million units, the highest pace in nearly seven years. The industry’s annualized sales rate also rose to 16.4 million last month, up from 15.3 million a year earlier. According to analysts, November’s impressive auto sales were driven by holiday promotions, new incentives and the debut of several new vehicle models. Manufacturers offered incentives averaging just over $2,500 per vehicle in November.According to J.D. Power, the average transaction price for new vehicles in November was $30,079, an increase of $461 from November 2012. Forecasters are predicting that U.S. auto sales this year should beat 2012 by more than one million units or about 8%, to a total of around 15.6 million cars and trucks.
Industry Expected To Reach Pre-Recession Levels In 2014
Analysts predict that access to good credit terms and the oldest average vehicle fleet in history, coupled with a boost in lease returns and new vehicle sales in 2014, will result in the industry passing the pre-recession threshold of 16 million vehicles sold in 2014. Analysts at Edmunds.com are forecasting sales of 16.4 million vehicles.Sales will further benefit from an expected 300,000 additional lease returns in 2014, compared to 2013. The returns will replenish the used vehicle selection on dealer lots as those owners purchase or lease a new vehicle.