As we all know, March auto sales came in like a “lamb” and went out like a “lion.” During the first couple of weeks of March, most of the Northeast, Midwest and Southeast were still experiencing winter’s final wrath which again accounted for slower than predicted sales at most of the nation’s franchised and independent car dealers. However, as the nation thawed out during the last two weeks of the month, along with the combined effect of delayed purchases and the beginning of the spring selling season, auto sales finished strong in March. Almost every major automaker posted a year-over-year gain in sales with new-vehicle sales reaching 1,534,381 units, a selling-day-adjusted 9.7% improvement from March 2013.
Here at ACE, our dealers tell us that their March sales picked up dramatically and they expect even higher traffic into their stores in April and throughout the coming spring months. According to Michael Kuppe, Vice President of Sales at Auto Credit Express, “A good portion of our dealers are seeing much greater traffic in their stores over the past 20 days and expect that once the warm weather ‘sticks around,’ store traffic will grow even more.” In addition, and according to Kuppe “A good portion of our ACE dealer customers have stated that as unemployment has eased and more people have gone back to work in their areas, more customers are coming into the stores using their tax refunds as down payments to help get them into both new as well as used vehicles.”
This trend is supported by data collected by a study recently done by GOBankingrates.com (an interest rate aggregator) that reported that 25% of Americans plan to purchase a vehicle (new and/or used) in the coming few months with their tax refunds. The study goes on to state that the average tax refund of $3,000 is equivalent to a 20% down payment on a $15,000 auto loan – a sweet spot for ACE’s subprime audience.
Once again, many of our ACE dealers have significantly increased the number of sub-prime internet leads they receive monthly from us to ensure they can attract customers looking to use their tax refunds to buy vehicles in next few months. In addition, and with the approach of the lucrative summer cars sales months almost here, other ACE dealers are using ACE for their automotive direct mail campaigns in April, May and June in order to drive additional traffic to their stores so they can put as many customers as possible into their vehicles.
Auto Credit Express was founded in 1999. Today, we are the largest automotive special finance total solution firm offering people in North America that have bad credit a selection of over 1,200 dealership and lender partners.
We take pride in helping first time buyers, people with various credit levels, repossessions, and people who have been through a bankruptcy get financed for a new or late model car. We help real people across the country every day. It's one of the things that make us different and better than the rest!