Auto Sales in August May Hit 7-Year High: J.D. Power

Auto Sales in August May Hit 7-Year High: J.D. PowerThe sales pace of new cars and light trucks isn’t down-shifting anytime soon — quite the opposite.
Vehicle sales in August may hit their highest mark for any month in seven years, according to a monthly forecast update from J.D. Power and strategic partner LMC Automotive.
Moreover, J.D. Power projects consumer spending on new vehicles in August to reach nearly $36 billion, which would be the highest monthly level on record.
Total light-vehicle sales, which include retail deliveries at the dealerships and fleet sales to rental car companies and businesses, could see 1.5 million unit sales in August.
That’s up more than 12 percent when adjusted for one more selling day than in the same month a year ago. There are 28 selling days in August 2013, compared to 27 days in August 2012.
The forecast is based on analysis through the first 15 selling days of August. The actual sales volume forecast is the highest since May 2007. Fleet sales will probably  account for 15 percent of total sales.
“The auto industry as a whole continues to experience a robust improvement in demand,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power.
Humphrey said that a strong selling environment coincides with consumers spending more on new vehicles than in any month on record.
Jeff Schuster, senior vice president of forecasting at partner firm LMC Automotive, adds: “We do expect to see a lower selling rate in September as Labor Day sales are counted with August totals, but the positive potential still outweighs downside risk in 2013 going into 2014.”

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