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Auto sales on record pace

Posted on Monday, July 1, 2013 at 3:32:20 PM

The numbers are in for the month of June, and U.S. auto sales are on a pace not seen since 2007. According to a Bloomberg report, the current rate would make 2013 the best in six years, and the strong start is being led by the Nissan and Ford Motor Companies.

There was concern over Federal Reserve chairman Ben Bernanke's statement about the reduction in bond-buying, but the rates for auto financing didn't change from before the announcement.

"The market is very strong and we seem to be doing well despite what's going on," said George Magliano, senior economist at IHS Automotive.

The demand for new cars is still high, and auto manufacturers are producing some of their highest-quality vehicles ever, according to the report. 

One new auto maker is on the rise, and contributing to the surge in sales for 2013. Tesla Motor Companies, who, according to the Huffington Post, have recently added drama to the market with their direct-to-consumer sales model, have posted a profit for the first quarter of 2013. Buyers get a $7,500 tax credit for purchasing the all-electric car, an incentive to those interested in auto financing, according to CNN Money.

"Is the market going to be immune to the sell off of the stock market and the rising mortgage rates? I find it hard to stay as strong in the face of these things," added Magliano. "We'll probably back off a little bit and then pick back up."