Auto Sales, Incentives on the Rise
Last October, Detroit's automakers threw juicy rebates at consumers and still watched new car and truck sales fall more than 30 percent from
record highs in 2001. It was the worst sales month in more than four years, the result of a weakened economy, rising unemployment levels and
a possible war with Iraq, according to the Detroit Free Press.
So this month, there's no way to go but up, and sales and incentives will be moving hand-in-hand in that direction, the Free Press said. Monthly sales results are to be released Nov. 3, and automotive analysts expect an increase of up to 5 percent in light vehicle sales from a year ago, according to the Free Press.
"The automakers' October sales will look respectable" against that meager measuring stick, said David Healy, an automotive analyst with
Burnham Investment Research. Growing consumer confidence and incentive levels, as well as fresher 2004 models, are expected to drive the boost, even though the unemployment rate has worsened, according to the Free Press.
The seasonally adjusted annual selling rate is expected to hit about 16 million car and truck
sales this month compared with 15.5 million a year ago, several analysts reported. The selling rate, also known as the SAAR, indicates what sales
would total for the whole year if they remained constant over 12 months, and it's an easy reference to compare how the market is performing month to month, according to the Free Press.
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