As automakers will reveal their sales for October on Tuesday, the analyst are jumping to predict that October 2011 is the best month for US car sales since August 2009. This increase is due to growing used car prices and the increased customer’s need to replace aging vehicles.
U.S. auto sales registered an increasing trend since June, when the annualized sales rate climbed to 11.6 million vehicles, reaching 13.1 million vehicle in September and 13.2 million cars sold estimated for October, up 10% from 12.2 million vehicles sold in October 2010.
For the next year, analyst forecast that total U.S. sales will increase by nearly 1 million vehicles reaching 13.5 million in 2012 compared with 2011. Among the positive factors that are influencing this evolution it can be seen: healthier economy, improved credit availability and an old vehicles on the road.
According to the analyst, the average age for the cars on US roads is about 12 years, 2 years higher than in 2007, and seems improbable that their owners can extend further the vehicles life by repairing them, thus generating new car sales.
Also, the used cars price reached in September its maximum level from the past 5 years.
The auto demand may also be influenced by diminished gas prices, which have now an average of $3.46 per gallon nationwide, while in May the average price was $4.
During October 2011, Japanese automakers managed to increase their inventories and were offering better deals in order to boost their sales, dramatically affected by March earthquake and tsunami.
“Japanese automakers have seen substantial improvement in inventory this month and buyers are responding to the better availability of product as well as higher incentives,” said TrueCar analyst Kristen Andersson.