NADA projects stronger auto sales in coming months
Wednesday, May 02, 2012
A new report from the National Automobile Dealers Association reveals that a combination of existing vehicles aging, increased inventory and lower gas prices could boost auto sales over the next couple of months.
Another significant factor in the increase in auto sales projected over the next several months is the modest economic growth seen in not just the auto industry, but other industries across the country including the manufacturing industry.
"If the trend of falling gasoline prices continues as expected, lower gasoline prices will be a key contributor to sales increases in both the new- and used-vehicle markets," said Paul Taylor, chief economist of NADA. "Lower gasoline prices will act much like a tax decrease, putting more money in the pockets of consumers."
In April, car sales showed continued strength, according to a report from Kelley Blue Book. New vehicle sales were projected to hit 1,148,000 units, or 14 million cars sold on a seasonally adjusted sales rate for April. However, the year-over-year assessment of these numbers registers a decline of less than 1 percent despite the short-term growth exhibited in the sales figures.
Investors can use their knowledge of the auto industry to their advantage when they take part in online investment opportunities.
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