Business & Tech
New Car Sales Expected to Rise 18% in August
JD Powers released a forecast. Car sales will hit their highest monthly rate in more than four and a half years.
Sales of new vehicles in August are expected to hit their highest monthly rate in more than four and a half years, according to a sales forecast released Friday by Westlake Village-based J.D. Power and Associates' Power Information Network.
August light vehicle retail sales are projected to be about 1.07 million, an 18 percent jump from August 2011, according to the forecast.
The increase will be the fourth straight monthly double-digit retail increase compared with last year.
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J.D. Power researchers consider retail transactions the most accurate measurement of true underlying consumer demand for new vehicles.
"August continues this summer's trend of healthy growth in retail sales as dealers work to sell down inventory in time to make room for 2013 models,'' J.D. Power Senior Vice President John Humphrey said.
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"To date, automakers have been diligent in better balancing production with demand, which has been critical to the improved financial performance for many brands. Going forward, this discipline will be tested as demand looks to cool somewhat through the balance of the year.''
Total light vehicle sales, including fleet sales, are projected at about 1.29 million in August, up 16 percent from August 2011, according to J.D. Power.
J.D. Power officials said many consumers are pushing aside the economic risks of buying a new vehicle as the need to replace their current vehicle is matched by availability of inventory and deals offered.
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