Auto sales could see 30% hike for May

[atlaw4u]

Economy, pent-up trade-in demand cited in forecasts

David Shepardson - DETROITNEWS - May 25, 2012

Auto sales may jump as much 30 percent in May as lower gas prices bring more truck buyers to showrooms, auto analysts said Thursday.

TrueCar.com predicts May sales will be up 32 percent from a year ago, and up 18.3 percent from last month. It also predicts average incentive spending per unit will be about $2,392 in May, up 4 percent from a year ago.

"Pent-up demand continues to fuel auto sales at a steady and sustainable level in May," said Jesse Toprak, vice president of market intelligence for TrueCar.com.

"All major manufacturers will see double-digit growth this month."

Barclays Capital said it expects May sales to be at a 14.4 million sales rate this month — about 30 percent over last May — which would keep the U.S. on pace for about 14.5 million vehicles sold in 2012.

"We expect sales to be supported by the improving economy…, an improving financing environment and the high pent-up trade-in demand from former new car buyers of 2004-08 who still own their vehicles," said the research note from Barclays auto analyst Brian Johnson.

Auto sales have been a major bright spot in the U.S. economy, accounting for half of the first-quarter 2.2 percent growth in gross domestic product... [Read More]

[RichXKU]

Originally Posted by atlaw4u

Auto sales may jump as much 30 percent in May as lower gas prices bring more truck buyers to showrooms, auto analysts said Thursday.

Great to see Americans still have fuel price amnesia.

[Right Lane Cruiser]

Fortunately not all of us are like that... though I have to admit my Leaf is effectively a truck compared to my Insight.

[WriConsult]

" as lower gas prices bring more truck buyers to showrooms". Well, for most of the country. Here on the west coast, prices have spiked this month and are very close to the all-time record. We're WELL above $4 now in Oregon, and I'm sure California is even higher.

[Indigo]

I think the author is pretty optimistic with regard to the future. He's obviously not considering the fact that Great Depression level unemployment is here to stay, and what few jobs are created these days are all part-time, minimum wage, no-benefit jobs. Likewise, banks only steal money in the modern era, they don't lend it out to customers for cars or homes.