Chrysler, Nissan Stand Out as New Car Sales Increase
It is turning out to be a good year for new car sales, with automakers selling 11.6% more vehicles in July than they did during that month last year – for a total of 1.46 million units. Chrysler and Nissan were standouts, according to Kelley Blue Book.
KBB said that July’s sales pace indicates a seasonally adjusted annual rate (or SAAR) of around 16.6 million. This is 15.7 million in more than July 2013, though down from 16.9 million in June 2014.
The big winner in July Chrysler, who saw the greatest sales gains during the month, among automakers. The smallest of America’s “Big Three” automakers recorded a gain of 22.8% year-over-year during July, against GM’s new vehicle sales increase of 10.7%, and Ford’s 8.8%.
KBB said that Nissan North America continued to gain market share during the month, with sales of its Altima, Rogue and Sentra models gaining 18% in sales during July.
People are also buying more expensive cars: KBB said that luxury vehicle sales have been responsible to almost a quarter of the industry’s growth so far in 2014. This is evident in the manufacturers’ sales breakdowns. Chrysler’s gains, for instance, were led by big increases in its Jeep and Ram truck sales.
What the recent data shows is that people are buying more expensive vehicles, and financing them on longer (over 60 month) terms – or with leases. While this may not be the best option for consumers (many of whom are buying more car than they can comfortably afford), it is good for automakers’ sales figures.
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