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3 Things to Consider in September’s Automotive Sales Figures

Automotive attention analysts have plainly wondered throughout
2014 if new car sales still have room to run, and so distant the
answer is clear: yes. August’s Seasonally Adjusted Annualized
Rate, or SAAR, strike 17.5 million units, a strongest August
opening in some-more than a decade and, if estimates reason true,
Sep looks set to spin in a really clever opening as well.
Here’s a demeanour during a estimates for Sep sales and a few
factors to consider.

By a numbers

While Sep sales sum will roughly positively destroy to top
August, that’s not something to worry about. Historically, new
car sales decrease almost after Labor Day, but
indications so distant are that this year’s decrease was many less
poignant than many years’.

J.D. Power and LMC Automotive guess that a U.S.
automotive industry’s sum SAAR for Sep will check in at
16.5 million units when all is pronounced and done. That’s much
stronger than final year’s Sep symbol of 15.4 million
units.

Chart by author. Data source: Automotive News DataCenter.
Sep 2014 information is estimated from J.D. Power information.

A some-more accurate magnitude of direct looks privately during retail
SAAR figures, rather than sum SAAR. Fortunately, a end
consumer is still offered for new vehicles during a healthy clip,
with sell SAAR climbing from 12.3 million units during last
year’s Sep to an estimated 13.5 million units this
month.

“The strength in automotive sales is undeniable, as August
sales opening was good above expectations and there is no
justification of a payback in September, suggesting that a auto
liberation still has some legs,” pronounced Jeff Schuster, comparison vice
boss of forecasting during LMC Automotive, in a
press release

. “On a heels of another boost in a 2014 approaching volume,
2015 is approaching to strike 16.7 million units with some-more upside
intensity than downside risk.”

3 things to consider

The automotive attention can be tricky, and there are many
variables to cruise when dissecting monthly and annual sales
figures. For instance, swift sales to vast companies can
significantly boost sales during pointless times. Fleet sales in
Sep are approaching to boost to 19% of sum light-vehicle
sales.

While that competence lead some to trust September’s estimated
opening will be arrogant by swift sales, that’s not a full
story. You contingency cruise a fact that during a prior two
months, swift sales of sum light vehicles have been next 15%
— and those have still been dual really clever offered months. When
looking during sales in three-month chunks, swift sales haven’t been
inflating altogether monthly sales performances.

Another cause to keep in mind when examining monthly sales is
a series of offered days. Sometimes there is a significant
disproportion from year to year, that if left unaccounted for can
askance comparisons. This Sep will have 24 offered days
compared to 23 offered days during Sep 2013. When adjusted
for a one-day difference, this Sep is still approaching to
shake out 5% some-more sum car sales — a respectable, and more
accurate, gain.

One final cause to keep in mind as we try to sign a health
of a automotive attention is car inventory. At a finish of
Aug a industry’s car register was during a 56-day supply,
according to J.D. Power. That was a decrease from July’s 61 days
of inventory, and it stays next normal register levels. When
attention register is reason in check, it’s a healthier scenario
and there’s reduction risk for inducement wars among automakers.

Ultimately, all of a factors and estimates indicate to a very
clever sell and sum Sep SAAR with no red flags in terms
of additional car register or arrogant opening due to fleet
sales. So far, notwithstanding attention analysts wondering how prolonged new
car sales can pull higher, sales don’t seem to be slowing
down anytime soon.

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The article
3 Things to Consider in September’s Automotive
Sales Figures

creatively seemed on Fool.com.


Daniel Miller

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