August U.S. New-Vehicle Sales Move Ahead with Gusto

AIS04 car shopperAugust was another month of stellar new-vehicle sales in the U.S. auto industry. In early reports, all three Detroit-based automakers celebrated double-digit gains at the end of a month that was capped off by the Labor Day sales weekend. The three major Japanese automakers posted even stronger double-digit increases than their U.S. rivals. Nearly all multi-franchise automakers reported better sales in August this year vs. 2012.

Consumers continued to replace their aging vehicles—averaging 11 years old—at a healthy pace that matches a monthly forecast update from J.D. Power’s Power Information Network® (PIN) and strategic partner LMC Automotive. Easier credit terms, including long-term loans and more reasonable lease deals, helped spur sales.

Total sales (retail and fleet) reached 1.5 million units for a selling-day adjusted increase of 12.7% from August 2012—the highest unit sales volume since May 2007. J.D. Power projected that the seasonally adjusted annual selling rate (SAAR) would surpass 16 million, which it did.
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