In an awkward turn of the calendar, the traditional August holiday that marked the end of the summer has moved to September, thus lifting forecasts for the month.
The auto industry is expected to continue its uphill climb in terms of sales and more importantly, profits, as the long holiday weekend is a boom for dealerships around the country. According to Santa Monica, California-based True Car Inc., a consumer-oriented buying service, the seasonally adjusted annualized rate or SAAR for the overall light vehicle market would hit 17.7 million autos for the month – the best figure for September in a at least a decade. Last year the total was a very respectable 16.5 million vehicles. Certain automakers, such as Subaru, Kia, Hyundai, Ford and Honda are predicting major increases, with overall new vehicle deliveries – fleets included – jumping 12.6% to 1,403,200 compared to 1,246,006 during the same period last year.
The postponed Labor Day holiday weekend has brought the sales boom from late August to September, delivering the spectacular double-digit surge. Retail volume alone – a better indicator of the real health of the auto market – could jump 13.8% to 1,214,400 autos as customers will have the opportunity to land sweet deals on outgoing model year models. “Labor Day and model year-end promotions combined to create an impressive outcome this month,” comments Eric Lyman, True Car’s vice president of industry insight. Deliveries of the high gross luxury and truck segments will surge 7.5 percent from the same period last year and crossover and SUV models will remain in high demand as certain parts of the country have seen gasoline prices $2 per gallon for the first time in more than ten years.