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Posted: 11:28 a.m. Monday, Dec. 3, 2012
DETROIT (AP) — A better economy and extra demand after Superstorm Sandy lifted U.S. auto sales last month.
Carmakers from Chrysler to Volkswagen reported brisk demand in November, and said sales rose on everything from small SUVs to sedans.
Americans are willing to buy a new car or truck because they are more confident in the economy than they’ve been in a while: Home values are rising, hiring is up and auto financing is readily available.
And Sandy, which hit at the end of October, forced buyers in the Northeast to postpone purchases until November. Also, people whose cars were damaged by the storm are starting to buy new ones. And because the average age of a vehicle on U.S. roads is approaching 11 years, people are being forced to make costly repairs or buy a new car or truck.
“Everything is kind of moving along almost in concert now,” says Jeff Schuster, senior vice president of forecasting for LMC Automotive, a Detroit-area industry consulting firm.
November sales, when calculated on an annual basis, are likely to be 15 million or more, the highest rate since March of 2008, according to LMC. That’s higher than the 14.3 million annual rate so far this year, even though November is normally a lackluster month due to cold weather and holiday anticipation. Both GM and Chrysler predicted November sales would run at an annual rate of 15.3 million.
If sales end up at 15 million for the year, it would be a vast improvement over the 10.4 million during the recession in 2009. Sales would still fall short of the recent peak of around 17 million in 2005.
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