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JD Power Predicts December To Be Strongest Month For Auto Sales Since 2005

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JD Power Predicts December To Be Strongest Month For Auto Sales Since 2005
  • McGraw Hill's JD Power issued on Thursday its U.S. auto sales projection for December.
  • 2015 seems poised to set a new vehicle sales record of 17.5 million units.
  • New light-vehicle sales in December are anticipated to be the highest of any month since 2005.

According to a monthly sales forecast issued by J.D. Power and LMC Automotive, December is expected to be the strongest month of any since 2005 in terms of new light-vehicle sales. In addition, 2015 seems to be on track to set a new record with 17.5 million sales – beating the 17.4 million units record set in 2000.

December new-vehicle retail sales are expected to reach 1,400,100 units, while total light-vehicle sales are projected to reach 1,712,200 units, the highest figures since July 2005, when retail sales were 1.64 million units and total sales hit 1.80 million units.

Related Link: Light Vehicle Sales Are Killing It In December: A Look Into U.S. Carmakers

"With continued record transaction prices, consumers are on pace to spend more than $44 billion on new vehicles in December and $437 billion on new vehicles in 2015, both record levels," said John Humphrey, senior vice president of JD Power.

"The Federal Reserve's increase in interest rates this week should have a minimal impact on new-vehicle sales," he added.

"There is the risk of a knee-jerk reaction from consumers to big economic news, leading them to delay buying, but the survey suggests it's a very small proportion of shoppers who are concerned about rates, particularly at this low level. In other words, we're not expecting much of a negative impact," the senior vice president continued. "We still expect consumers to be drawn into showrooms as manufacturers clear out inventory in preparation for the New Year."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

 

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