By on January 19, 2011

Despite rising gasoline prices, January shapes up to be a very strong month for car sales. Chief Executive Jeremy Anwyl told Dow Jones Newswire that the seasonally adjusted annualized rate (SAAR) for the month was looking “very strong” at 12.8 million vehicles as of last week, and was higher than December. That is a surprise: January sales typically are lower than December sales.

Edmunds sees Kia the biggest winner so far. BMW is taking it on the chin: A huge year-end sales event is taking its toll.

As far as fuel prices go, Edmunds thinks they could put a crimp into SUV and truck sales that had a strong rebound last year. Remember: Big cars, big profit. Small cars, small profit.

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13 Comments on “Edmunds Sees Strong January, Is Worried About Fuel Prices...”

  • avatar

    I can wait for gas to go up…Reading all these Sajeev articles about Panthers has made me want to get my own Grand Marquis…Should be great deals as the masses dump their old “gas guzzlers” for something new and more fuel efficient!

    • 0 avatar

      Sorry but gas prices rising aren’t going to cause prices of Panthers to fall. It’s just not worth trading to a much smaller car w/o the ride and handling of the Panther to gain a measly 1MPG. I regularly get 20MPG in my normal everyday driving and can get 26.5 with the cruise set at 75MPH. The fact that the last GM rolled off the assembly line means just the oposite that the prices of used ones are going to rise, so get one now if you want one you won’t regret if, I’m on my 4th and will never drive anything else. Full frame, RWD and a V8 FTW.

  • avatar

    This week my mother is buying a new Dodge Grand Caravan. She is supposed to take delivery tomorrow. The van she wants is in Louisiana and the local dealer is sending someone to get it.

    Apparantly the 2011 Chrysler minivans are not out yet and the dealers are still clearing out the leftover 2010’s. The sticker on Mom’s van is $30,995. She got a $1,750 rebate, a $2,000 owner loyalty discount and $750 bonus cash. The dealer also gave her a $2,500 trade in allowance for her 2001 Grand Caravan. She’s paying cash, so with the tax, tag and title fees her out the door price should be just under $26,000. Not too bad for a new van with a leather interior and the 4.0 V-6.

    • 0 avatar
      Sammy Hagar

      No offense, but $4500 off a Chrysler minivan w/an MSRP of $31K doesn’t sound like much of a deal at all, regardless of the interior or humdrum V6 upgrade. Plus, there’s always that depreciation nightmare w/Chrysler vans (though that might not matter in her case); I’ve seen ’09’s w/35K miles or less going for sub-$14K, though that’s w/out leather and probably the base engine. But still…

      BTW: I’m not bashing Grand Caravans, as they’re great for people like me (people who buy newish, well-serviced lease returns at roughly half the MSRP).

    • 0 avatar

      With 7K in rebates and trade in it sounds like you’re paying about 500 under MSRP – ~1200 over invoice – for a leftover Dodge minivan.
      They ripped you off pretty hard.

    • 0 avatar

      My research indicates the invoice on this particular van is $29,326. The msrp is $30,995.

      Personally I would not want a Chrysler van (I own an Odyssey) but Mom likes her Dodge minivans. Over the years my parents have owned four Grand Caravans (1989, 1993, 2001, 2006) and Mom wouldn’t have anything-else.

  • avatar

    No cars no profit

  • avatar

    When gas is between $5 and $8 per gallon — what then?  People are buying SUVs and trucks, but why?  I don’t see a thing inside the vehicle but perhaps a couple soccer balls. ;)
    I may get a V8 Mustang some day, if I join a club.  I like to travel too much to buy something getting me 15 to 23 MPG say, even as a second car.  Perhaps as a third car for some club, but not for doing too much driving, should gas spike over $4 per gallon ( Isn’t very imaginable that we see $5 to $8 before the end of the decade? )  Am I off base here? Maybe a sinking economy holds down the pricing, but China and India …. more and more cars using gas.
    Got a Miata  and an Accord V6 — both, on longer runs can get 30MPG ( Miata sometimes a tad higher )  I see the Elantra is getting 40+ freeway MPG… not sure I like fatter A pillars and slant of windshield — sorta bug me on my ’07 Accord too.  What is up with new cars, like the Hyundai and just nearly every brand, having the brake up so much higher than the gas pedal.  It is like lifting off the gas a half a foot to find the brake.  Miata is darn near even, which is proper.

  • avatar

    How does it work when you buy a car at the beginning of the month but it’s still part of the month before as far as sales figures go?  For example I bought a Toyota on Jan 3rd, the last day of the Toyotathon event, the dealer was telling me that the sales through the 3rd in this case actually count towards 2010 totals.  I’ve seen other events like this that go just past the end of a month… Are all sales counted on the day or month they are completed or do they effectively “backdate” things?  Or is it conceivable that different people count the same sale two different ways (or even twice?)

  • avatar

    The ignorance afforded to buyers is very frightening to me. People still buying trucks after 4 dollar gas prices happened. My car only get 19mpg, but I payed $2k for it. Perhaps I’ll switch to a Corolla soon.

  • avatar

    “Apparantly the 2011 Chrysler minivans are not out yet and the dealers are still clearing out the leftover 2010′s.”

    Didn’t know you couldn’t buy a 2011 T&C yet, but I know you can rent one. I did about a month ago, not that I was looking for a mini-van but National was renting 2011 T&C’s for $23 a day, far better deal than anything else that they had to offer. It was loaded to the gills; the sat radio was an unexpected feature.

    I have never owned a mini-van and can’t imagine ever doing so but I have to tell you this thing was nice. Drove & rode beautifully, great road manners. The interior was also a new high-point for Mopar. I would imagine the need to deep discount Chryco’s like these through incentives will dry up somewhat when these are publically available.

  • avatar

    The problem with high gas prices has nothing to do with MPG.
    The problem is that it will force families to cut further back on spending of all kind, which will take them out of the car market completely.

    We are no longer talking about people switching cars from gas guzzler to mini car, we are talking about bankrupted families paying off their household debts and discovering that whatever they are driving is going to cost more to drive. The fiscal crisis is far worse than a mere car switch.

    Trucks will still have a market. Big vehicles will still have a market. The reality is that you can put more people in a big vehicle than a little one and that isn’t going to change. There isn’t any reason to believe families will stop towing things. There isn’t any reason to believe that the demand for these vehicles will dry up because of gas prices, just because we saw that happening in the past. We face today a far worse situation economically than we have faced since 1933.

    Gas prices will prevent car buyers from BUYING anything.

    Expect inexpensive cars to be the chosen vehicles. Hyundai, Kia and cheap cars are going to be OK. Value is going to be more important in 2011 than MPG.

    2011 will not be better than 2009 or 2010 in many ways. High gas prices will kill what little economic recovery we currently see.

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