There was mostly good news in October for the major automotive brands. New-car sales in the United States increased by 13.6% year-over-year in October, with a total of 1.46 million vehicles sold during the month.
In addition, Kelley Blue Book is reporting that the estimated average new-car transaction price for light vehicles during October was $34,023 – an increase of $458 per deal from October 2014; and $233 from September of this year.
Should the good news in October continue on through the end of the year, there’s a very real possibility the auto industry will establish a record calendar year sales number. Currently, the best-ever figure stands at 17.3 million in the Year 2000.
To what can we attribute the October gains? According to this report in The Wall Street Journal, favorable economic conditions and a nice array of incentives helped boost what would otherwise be one of the slower months in the automotive industry. Though incentives have not always been popular with dealers, these days it isn’t so bad. Why? Customers seem to be more interested in bigger-ticket vehicles, allowing dealers a bit more wiggle room to negotiate – and thus they are still able to get a good profit from these cars.
Customers, of course, are looking at bigger vehicles because gas prices have stayed below $3 per gallon for a good while, and they seem confident the prices will stay low for the foreseeable future.
Which automakers did well in October? General Motors numbers were up 15.9%, while Fiat Chrysler rose 14.7%. As you might suspect, Volkswagen’s numbers were not as high as others amid the backlash over the uncovered emissions cheating scandal. Still, even they managed to increase their numbers 2.9% from October of last year.
Did You Have Good News in October?
Did your dealership underperform in October? If so, you need a strong, knowledgeable advocate to help you drive people to your dealership … and your store’s Website, too, for that matter. You should have someone on your side who can help you plan well beyond just this month. That’s us; that’s what we do for all our clients on a regular basis at JKR Automotive Advertising.
Call Eric Tigner at (321) 397-0777 today to get things in motion. Before you know it, you’ll have the high volume of foot traffic you have always wanted (and known your dealership could have).
To give you something for your time, by contacting us you will also receive a free-of-charge advertising review. Using our scientific data provided by our media buying specialists, you’ll find out how you’re doing compared to the other guys in your market, which is a very valuable piece of information to have … and it’s yours with no strings attached, whether you sign up with us or not.
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