Auto Sales Defying Physics: Expected to Bounce Back Higher
Hurricane Sandy hit the East Coast hard in October, damaging homes and infrastructure, and right along with those, auto sales. It’s not easy to go car shopping in the middle of a super storm, but auto manufacturers are expecting sales to jump in November, with many buyers replacing their damaged and destroyed vehicles, and others just anxious to buy after being held back in October.
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Consumer confidence is at its highest since 2008, which may be contributing to the auto industry’s strongest year since 2007. Annual sales rates for the industry are expected to come in at an annual rate of about 15 million in November, which is quite a comeback toward the 16.1 million sales in 2007. There is optimism within the industry for further sales increases in 2013, as current average car ages are at a record high of almost 11 years old.
The fiscal cliff still threatens to throw the 2013 economy back into a recession, but Edmunds’ Chief Economist Lacey Plache believes that industry will rebound even stronger if the economy does fall back into recession in 2013.
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