J.D. Power and LMC Automotive predicts that July will mark the highest performing month for U.S. auto sales since 2006. In fact, the seasonally adjusted annualized sales rate (SAAR) will surpass 16 million new vehicles for the fifth consecutive month, hitting 16.6 million. That is over 6% better than 2013.
Senior V.P. of J.D. Power, John Humphrey, goes on to predict that consumers will spend about $36 billion on new vehicles this month. Forecasts from Kelley Blue Book, Edmunds.com, and TrueCar.com are consistent with these numbers.
TrueCar.com numbers declined slightly from June (16.35 million vs 17 million), but its numbers are still almost 10% over the SAAR forecast in July of last year.
Jessica Caldwell, an Edmunds.com senior analyst said in a statement:
“July’s performance is the clearest indication yet that retail buyers are driving market demand. Shoppers are looking past news of recalls and rising gas prices and they’re finding affordable interest rates and other incentives that make it easier to buy a new car.”
Chrysler saw an impressive jump at 22.9% over last year. Volkswagen, however, is forecast to sell 12.7% less units than in 2013.
The positive trend across auto sales is expected to continue in August. With all of this good news, it may be tempting to kick back for the rest of the summer. Instead, focus on making the most of the uptick by improving your own sales strategies.
Strive to exceed your current dealership goals (keeping these projections in mind). Update your marketing strategy to reel in reluctant customers or those with loyalty to a competitor.
It may even be a good time to start upgrading your technology.