Large car manufacturers in the United States experienced a decrease in car sales in August compared to the same time period one year ago. While there was a drop in car sales for the large manufacturers, smaller scale car makers saw an increase. Stephanie Brinley, a senior analyst for IHS Markit, notes in an article from TheDetroitBureau.com that "growth is stabilizing" and that "the fundamentals for a healthy industry remain."
New Car Sales Down
Overall new car sales in August dropped 3.5% compared to the figures from 2015. Major manufacturers such as General Motors, Ford, Toyota and Nissan all saw new car sale decreases of more than 5%. The number of passenger cars sold continued to decrease, while truck and utility vehicles were purchased at a steady pace. In short, overall high volume car sales have experienced a downturn.
Low Volume Car Sales Up
Although the larger car makers experienced a drop in new car sales in August, not every manufacturer had the same loss. Subaru led the way with an increase of 14.7%. Similar to the larger auto makers, utility vehicles were experiencing the best sales. Audi was another manufacturer with increased sales. Audi's utility vehicles and sedans saw more sales than the prior year, contributing to the upward sales trend. August marked the brand's 68th month in a row of higher sales.
Subaru and Audi were not the only car manufacturers that experienced new car sales growth in August. Jaguar, Volvo, Land Rover, Lincoln, Dodge, Cadillac, and Porsche all had increases as well. These ranged from 3.5% (Porsche) to 188.5% (Jaguar). This reflects the overall increase in sales for low volume vehicles.
New Car Sales Outlook
As Brinley noted to TheDetroitBureau.com, industry experts now believe that new car sales growth is stabilizing. These experts also predict that incentives will play a larger role for specific models and market segments. But incentives have already had an impact, as they increased by 7.7% in August compared to 2015 - a sure sign that car sales are beginning to flatten for most segments.
So if your dealership is a high volume store and these national trends reflect what's happening in your store, what can you do to keep the sales momentum going?
Sell More Vehicles
If your store has seen a decrease in sales or would just like to keep the good times rolling we have a suggestion: why not establish a subprime sales department or, if you already have one, boost your sales in that department. You can begin by contacting our team at Auto Credit Express and start the process by completing our contact form or calling us at 888-535-2277. We will provide your store with highly targeted sales leads along with our special finance selling system. Both combine to give you the best shot at maximizing your per unit gross profit. Get in touch with us today to learn how we can further assist you.