KBB Predicts 12% Increase in New-Vehicle Sales
The vehicle information site said this week it expects new-vehicle sales to total 1.43 million units in October, the highest October sales volume in more than a decade.
IRVINE, Calif. — Kelley Blue Book said this week it expects new-vehicle sales to increase nearly 12% year over year to a total of 1.43 million units in October, a predication that would put the seasonally adjusted annual rate at 197.9 million if realized. It would also be the highest October sales total since 2001.
Fueling the vehicle information site’s double-digit growth prediction is new-vehicle sales continue to roll off dealer lots after the industry experienced its strongest sales month in over a decade in September. Employment and fuel prices are other drivers of KBB’s prediction.
“Key economic indicators for auto sales are still strong, including jobless claims at a historic low as the national unemployment rate approaches 5%, fuel pricing nearing six-year lows, and interest rates that remain near zero,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “This momentum has pushed Kelley Blue Book’s forecast to 17.4 million for 2015, a 5.6% year-over-year improvement.”
Sales Volume 1 | Market Share 2 | |||||
Manufacturer | Oct-15 | Oct-14 | YOY % | Oct-15 | Oct-14 | YOY % |
General Motors (Buick, Cadillac, Chevrolet, GMC) | 250,000 | 226,819 | 10.2% | 17.5% | 17.8% | -0.3% |
Ford Motor Company (Ford, Lincoln) | 219,000 | 187,897 | 16.6% | 15.3% | 14.7% | 0.6% |
Toyota Motor Company (Lexus, Scion, Toyota) | 198,000 | 180,580 | 9.6% | 13.8% | 14.1% | -0.3% |
Fiat Chrysler (Chrysler, Dodge, FIAT, Jeep, RAM) | 191,000 | 170,480 | 12.0% | 13.4% | 13.3% | 0.0% |
American Honda (Acura, Honda) | 135,000 | 121,172 | 11.4% | 9.4% | 9.5% | 0.0% |
Nissan North America (Infiniti, Nissan) | 120,000 | 103,117 | 16.4% | 8.4% | 8.1% | 0.3% |
Hyundai-Kia | 110,000 | 94,775 | 16.1% | 7.7% | 7.4% | 0.3% |
Volkswagen Group (Audi, Volkswagen, Porsche) | 50,000 | 49,130 | 1.8% | 3.5% | 3.8% | -0.3% |
Total 3 | 1,430,000 | 1,277,821 | 11.9% | - | - | - |
1 Historical data from OEM sales announcements | ||||||
While General Motors is expected to lead the way in sales volume, Ford Motor Co.’s expected 16.6% increase in new-vehicle sales from a year ago would be the biggest gain in October. Expected to lead the way, according to KBB, is the F-150, which is pushing overall F-Series volume to new levels of growth this year. Ford’s refreshed Explorer should also be a solid driver of growth this year for the automaker.
The Volkswagen Group is also expected to show a slight gain in sales volume, despite its recent troubles, the site noted. “With most brands experiencing growth this month, Volkswagen Group should report fairly even sales totals in the wake of their diesel emissions issue,” said Gutierrez. “Audi and Porsche will be driving the sales growth for the manufacturer, as the Volkswagen brand posts negative figures, largely due to the stop-sale of its diesel models, which previously made up nearly 20 percent of the brand’s sales volume.”
By vehicle segment, compact utility vehicles are expected to lead the way for the third month in a row with nearly 40% growth. This segment has seen five new models enter the segment in the past year, which has resulted in more than 20,000 units sold per month. Still, the rest of the segment continues to strengthen at double the rest of the industry’s pace.
With low fuel prices and exploding popularity of small utilities, small and mid-size cars will continue to lose market share in October. These are already two of the most competitive segments in the market, and year-to-date sales in both segments have declined. While Kelley Blue Book said it expects an increase in volume in October, due to strong overall sales momentum in the automotive industry, it also believes market share will drop by more than a full percentage point for these car segments.
More Auto Finance

Interest Rates Further Squeeze Auto Consumers
Last month’s hike and a potential second increase this month add to a growing list of inflation woes that could continue to dent overall car sales.
Read More →
Mind Your Process
Consistent steps taken in various aspects of the F&I office can make valuable differences over time, similar to an outline for a best-selling book.
Read More →
Top Five Credit Application Fraud Flags
Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.
Read More →
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →