Although summer auto sales were predicted to spike, they were actually a bit the slow side. But the industry remains confident that 2016 will be a growth year.
As this BusinessWire article explains, the unexpected lull in summer sales may have been due to extremely hot weather, which kept customers inside, rather than venturing out to the showrooms and lots.
At LotLinx, we anticipated that summer would bring big numbers for some dealers. And some manufacturers, including GM and Kia, did see heavy sales activity as a result of enticing sales events.
Despite the summer lull, NADA is sticking with its original new-cars and light trucks sales forecast for a strong 2016 at 17.7 million units. As NADA Chief Economist Steven Szakaly explains in this Auto Dealer Today article, “We’ve had six straight years of steadily rising sales, which has been a fantastic period of growth, and vehicles per household have returned to the same level prior to the Great Recession.”
Reasons behind their prediction include a rising employment rate, leases, and cheap gas and diesel prices. An expected 0.50% hike in auto loan interest rates will likely go unnoticed by consumers, due to manufacturer incentives that will counteract the increase.
The success we’re seeing lately among LotLinx clients is in alignment with NADA’s predictions for strong sales. Lundgren Honda’s story is just one recent example of how dealers are utilizing VIN-specific marketing strategies to move inventory quickly, while spending less. You’ll find many more success stories here.
While the sun has set on some less-than-stellar summer sales numbers, the good news is that 2016 is predicted to exceed 2015. Which means many dealers are preparing for a hearty fall selling season.
How did summer sales look for your dealership? Are you anticipating a busy fall? Post your thoughts on Twitter, LinkedIn and Facebook and tag them #TBD.