New Car Sales Expected Up Around 10 Percent In December And For The Year
January 2nd, 2012 2:22 PM Share
When U.S. new-vehicle sales will be announced tomorrow, there should be gains of around 10 percent compared to December the year before, a panel of 30 analysts surveyed by Thomson Reuters reckons. The gain will mostly go on account of the fabled pent-up demand, which suddenly is a bad thing. Gains are linked to buyers who delayed purchases do not indicate a strengthening economy, analysts tell Reuters.
TrueCar expects the biggest gains for December from Hyundai, up about 40 percent, and Chrysler, up 34 percent. For the full year, TrueCar thinks U.S. auto sales will reach 12.8 million, up 10.3 percent.
We will cover it in full tomorrow. No grade the analysts this time, as Bloomberg’s panel appeared to have eloped to Aspen and Aruba.
Published January 2nd, 2012 2:21 PM
Join the conversation
6 of 13 comments
From the shanty via observing the USA via online media, news, etc and the limited info obtained via local TV broadcast news, local and national and reading a multitude of online news sources it appears that non-wealth creators, the taxpayer-paid bureaucrat and those in positions below the bureaucrats within the bureaucracies; the cohort that compared to a huge cohort within the private sector (where wealth is created) is experiencing a lack of economic security. Sure, other groups with discretionary income but there remains a multitude of "common folks" experiencing a horrid lack of discretionary income and struggling just to attain the basics of life.
I'm in the market for a new vehicle. Actually I'm ready to buy if I can get the right price for what I want. So I've been "in the field" recently and got a good perception of the beat on the street. 100% of all salespeople have said that used cars are only going to those with poor credit because anyone that can afford new is going that way. Why would I want a 2010 model with 20k miles for only a $3000 discount off a new one?! Used car prices are insane and "poor" people are going to drive their beaters until they MUST buy a new vehicle. Not sure why this is as nobody has any money, but it's NOT A GOOD THING. This is causing demand destruction in the industry without a doubt. As for new cars, Hyundai/KIA has people believing they are getting more for their money than Honda/Toyota. I'm not quite sure they are there yet on a quality level, nor are they that cheap. I wasn't impressed but they do load up their vehicles with options that recently were only offered in luxury lines. Most car buyers are sheep and easily duped by gadgets. Score to the Koreans for being savvy there. I don't get Chrysler...they don't have anything that even interests me. Fuel isn't cheap and their lineup is thirsty. They have nothing in the all important midsize segment. SUV's and RAM trucks will not last forever, neither will aging boomers buying retro styled muscle cars. I wouldn't be so quick to throw praise at their feet. Then there's me. I find the vehicle I want, am ready to buy, and the dealer will not offer anything better than MSRP. WTF? I tell him that until he's ready to deal I'll keep driving my Honda. It'll go another 100k miles if I need it to. And right there is the problem. I don't have to buy a new vehicle. The economy still isn't good enough to move new models on options and styling alone. Mfg's need to squeeze margins more and sell 'em cheap which IMO isn't happening yet.
Our neighbor across the street recently bought a new Equinox. He has some special GM plan. His discount? A whopping $300.00 off MSRP! Are you kidding me? I was shocked when he told me that, as there are thousands of dollars on the hood of Malibus and Impalas. Depends on demand. That's great if an OEM can get it, I just hope for GM's sake and our neighbor's the product lives up to its premium price! My cars aren't going anywhere anytime soon!
Chrysler and Hyundai/Kia are kicking butt because of the products/value they are offering. Both companies are offering all-new or refreshed products that are resonating with the buying public. It's that simple.