The preliminary numbers are out, and the forecast calls for high April new car sales. According to this article from Automotive News, new vehicle sales in the United States will finish at their highest April level in 10 years. Further, projections show the best four-month start overall since way back in 2001. Major prognosticators speculate a year-over-year increase between 5.2 and 6.1 percent, which would yield a return of about 17 million units, a number not seen since 2001.
Part of the high April new car sales is due directly to increased numbers in the light truck segment. Overall, sales of compact utilities are expected to rise about 11 percent, while sales of midsize utilities should go up 9.6 percent; and full-size pickups are projected to see a 6.3 percent jump. Conversely, midsize cars – usually a strong segment – are projected to fall 3.1 percent.
Of course, the low gas prices are helping persuade people to purchase a larger vehicle … and as long as the prices at the pump stay down, this is good news for auto dealers. Simply put, stronger truck sales mean better profit margins! It’s no wonder that JD Power, the nation’s leading independent research company, estimates that automotive transactions are on pace to set a new April record. Last year’s then-record transaction price was $29,948, while this year’s projection eclipses that number at $30,680.
How Were Your April New Car Sales?
How did your dealership do during April? Did you have big sales numbers? How about high profit margins? The fact is, you can have both; you don’t have to sacrifice one to get the other. There are a number of factors that ultimately determine an auto dealer’s profits, many of which you may not even be considering at the moment. JKR Automotive Advertising can show you what they are, and get you on the right path to success. Take the time to make one simple phone call that will change the direction of your dealership almost overnight. Get the wheels in motion today by calling Eric Tigner at (321) 397-0777.
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