Access ID:
Pay Online Button

CD Rates

Positive yearly growth present in auto industry

Posted on Monday, July 7, 2014 at 9:56:33 AM

Thanks in part to affordable auto financing and improved personal finances, consumers today are flocking to dealerships in search of their next new car. 

According to a joint report by J.D. Power and LMC Automotive, June will be the fifth month in a row with year-over-year gains in new-vehicle sales. For the month, the seasonally adjusted annualized selling rate, or SAAR, is predicted to be 13.3 million units, one of the strongest months reported so far this year. To complicate matters, this past June had only 24 selling days compared to 26 in June 2013. 

To address that issue, John Humphrey, senior vice president of the global automotive practice at J.D. Power, said that combining May and June's figures provides a more accurate number.

"When combined, May and June retail sales are expected to be up 7.2 percent, compared with May and June 2013, which underscores the continued positive trajectory in growth and overall health of the industry," he added.

In addition, total new-vehicle sales are estimated to hit 6.5 million units over the first six months of 2014, J.D. Power noted in a separate report. If that is the case, it would be a 6 percent uptick compared to the same time period in 2013. This comes even as the beginning of this year was affected by severe weather patterns, limiting some buying activity.