BANDON, Ore. — CNW Research expects June’s delivery rate to rise about 9 percent from the same month last year. This will set the delivery rate at 1.4 million units if the firm’s prediction is realized.
“A combination of higher closing ratios — up 3.3 percent vs. last month — and a continued increase in subprime approvals are underpinning the increase,” writes CNW’s Art Spinella in his firm’s monthly report.
The market research firm noted that pent-up demand impacted about 315,000 consumers in the first quarter, consumers who expected to return to the new-car market in three to four months.
“In subsequent tracking of those postponers, a majority started coming back to market in the late May and early June, helping to build the momentum for the month,” Spinella writes.
In February, the firm noted, 118,250 consumers postponed a new-car purchase. About 94 percent expected to still purchase but expected to put off the decision for four months. According to CNW, 30 percent returned in March, 22 percent in April and 36 percent delayed until May. “We expect a similar pattern to emerge this month,” Spinella wrote.