Nov car sales increase from damaging Sandy

[CarolBlack]

Auto sales were way up for November. However, some of that increase was an unexpected reaction to the devastating Hurricane Sandy. Have you been in the market to purchase or sell a new or used automobile? If this could be you, don’t go any place else before you look into Gus Johnson used cars!

November auto sales looking good

General Motors was certainly the exception as November seemed like a really great month for most car makers. Chrysler saw a 14 percent sales increase and Honda saw a 39 percent boost in sales. Volkswagen had a 29 percent boost.

About 14.3 million automobiles are usually sold every year, but LMC Automotive thinks that car sales will reach over 15 million for Nov.

General Motors the straggler

During the month, General Motors had a really hard time selling pickups and is sitting on a lot of them. The business only saw a 3 percent boost in Nov. In October, the industry average was 14 percent, and General Motors only saw a 4 percent boost that month as well.

The boost in spending has something to do with the massive buyer incentives being offered, though GM does not seem to be doing the same as other car manufacturers. For example, it is only offering a $500 discount on the 2013 trucks, but rivals have much better discounts, according to the Buffalo News.

If General Motors wants to get all the current business, it will need to increase incentives next month. General Motors can be worried about hurting its brand image since large incentives is not always the very best plan for the brand.

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Sandy causing change

Car sales have been strong all season, with consumer confidence on the rise and auto financing readily available. But those sales got an additional boost last month as an unexpected consequence of superstorm Sandy's devastation.

This is ironic, according to economist Diane Swonk.

We have an extraordinary storm like this that hits such a populated area. It does make a dent in economic activity but then subsequently there is a simulative effect,” she told ABC News Radio. “This is a very perverse thing that happens.

Sandy victims alone added 20,000 to 30,000 in Ford sales, according to the car maker. The basic belief is that people held off on their purchases until the catastrophe was over rather than buying in October.

Experts also expect sales to be influenced for months to come as storm victims start to replace automobiles that were wrecked by the storm. According to estimates by General Motors, 50,000 to 100,000 automobiles were totaled by Sandy.

Sources

Buffalo News
ABC
Daily Finance