Welcome!

News Feed Item

New-Car Shoppers Return To Market In November After Superstorm Sandy Disrupts October Sales

Strongest Sales Month Expected in December; Honda, Volkswagen Rely on Redesigns to Drive Gains

IRVINE, Calif., Nov. 30, 2012 /PRNewswire/ -- New-car sales are expected to hit 14.7 million seasonally adjusted annual rate (SAAR) in November, slightly outpacing the 14.3 million unit pace achieved last month when Superstorm Sandy swept the East Coast, according to Kelley Blue Book, www.kbb.com, the leading provider of new and used car information.  Although sales remained somewhat suppressed in storm-devastated parts of the northeast immediately following the storm, it looks as though the worst may be behind us. 

(Logo: http://photos.prnewswire.com/prnh/20121108/LA08161LOGO)

Sales were hard hit in New Jersey, where retail sales volume declined drastically in the days immediately following the storm.  New Jersey typically accounts for 3 to 5 percent of all sales in the United States.  In the week immediately following the storm, New Jersey saw its share of nationwide sales volume decline to 1 percent, its lowest share for the state this year.  While New Jersey was most heavily impacted by Sandy's aftermath, vehicle sales in New York similarly fell.  In both states, auto sales have steadily returned to pre-storm levels of activity.

"Kelley Blue Book anticipates buyers that were forced to delay a purchase due to the onset of the storm will continue to return to market during the next several weeks," said Alec Gutierrez, senior market analyst of automotive insights for Kelley Blue Book.  "Additional demand will come from residents that unfortunately had a vehicle destroyed.  These consumers will likely help make the last weekend of November a strong one for the automakers with demand for replacement vehicles continuing into December." 

Considering the thousands of consumers who will need to find a replacement vehicle in the near future, Kelley Blue Book expects sales to continue to trend upward during the last days of November, setting up the market for what could be a very strong December.

Sales Gains to Continue in December
While November's sales results appear on pace to achieve par for the course, December could be the strongest month in vehicle sales in 2012.  Buyers who delayed purchases or that need to replace a storm-damaged vehicle will likely hit dealerships in droves, potentially driving sales beyond a 15 million unit annual pace. 

"Although the industry can assume that a significant percentage of consumers seeking replacement vehicles will shop used, many automakers are offering residents of FEMA-designated storm-damaged areas additional cash incentives to entice consumers to shop for new cars," said Gutierrez.  "Nissan, Mazda, Ford and Chrysler are among the manufacturers offering incentives such as $500 in additional bonus cash, employee pricing or special finance deals to those in the market for a replacement vehicle." 

These special deals are in addition to the already generous incentives available in the marketplace today.  Kelley Blue Book expects low finance rates, cheap lease offers and modest cash incentives to continue throughout 2012 and into 2013, so consumers looking for a great deal should have plenty of options.  Those looking for a truck or SUV will continue to find the most generous cash incentives, while shoppers that find the remaining 2012 model-year vehicles in the marketplace also can expect to find significant savings.

Honda and Volkswagen Rely on Redesigns to Drive Year-Over-Year Gains
In November, Kelley Blue Book forecasts Honda and Volkswagen will lead industry gains once again, with each brand expected to increase by more than 20 percent on an annual basis.  Honda will continue to report strong sales of the Accord, Civic and CR-V, each of which were redesigned for the 2012 model year. 

"The Civic has remained the dominant-selling compact all year, despite a less-than-stellar reception by the automotive press," said Gutierrez.  "Once the 2013 model-year refresh arrives in early December, the industry could see Civic sales surge to new heights." 

Volkswagen has seen strong sales of the Jetta, Passatt, Golf and Tiguan drive market share up.  The Jetta and Passat each were redesigned for the 2012 model year, and have helped Volkswagen to increase market share by offering lower cost of entry while retaining the upmarket amenities Volkswagen is known for in high-end trims.

Honda and Volkswagen Lead Industry Gains






Sales Volume

Market Share

Manufacturer

Nov-12

Nov-11

YOY%

Nov-12

Nov-11

YOY

General Motors

193,100

180,402

7.0%

17.8%

18.1%

-0.3%

Ford Motor Company

167,200

166,441

0.5%

15.4%

16.7%

-1.3%

Toyota Motor Company

158,000

137,960

14.5%

14.6%

13.9%

0.7%

Chrysler Group

120,800

107,172

12.7%

11.1%

10.8%

0.4%

American Honda

108,150

83,925

28.9%

10.0%

8.4%

1.5%

Nissan North America

83,250

85,182

-2.3%

7.7%

8.6%

-0.9%

Hyundai-Kia

94,150

86,617

8.7%

8.7%

8.7%

0.0%

Volkswagen

48,150

38,112

26.3%

4.4%

3.8%

0.6%

Total

1,085,000

994,786

9.1%

-

-

-

*Includes brands not shown







Small Cars Hold Steady Despite Cheaper Gas
Although fuel prices have dropped nearly $0.50 per gallon since early September, demand for small cars has remained surprisingly resilient.  Demand for mid-size cars will remain strong as well, thanks to attractive lease offers on most of the major players in the segment.  The Honda Accord, Ford Fusion, Chevrolet Malibu, Toyota Camry and Nissan Altima all were redesigned this year and consumers looking for the latest and greatest can find lease payments of $250 or less on any of these fantastic redesigns.  While mid-size cars will continue to lead the industry in terms of market share, Kelley Blue Book expects sales of full-size pickup trucks to continue to increase as demand heats up for vehicles equipped with four-wheel drive in colder parts of the country.

Compacts Hold Steady Despite Falling Gas Prices





Sales Volume

Market Share

Segment

Nov-12

Nov-11

YOY%

Nov-12

Nov-11

YOY

Mid-Size Car

184,450

176,071

4.8%

17.0%

17.7%

-0.7%

Compact Car

160,580

179,059

-10.3%

14.8%

18.0%

-3.2%

Compact Crossover

119,350

115,074

3.7%

11.0%

11.6%

-0.6%

Full-Size Pickup Truck

149,750

108,391

38.2%

13.8%

10.9%

2.9%

Subcompact Car

44,500

37,302

19.3%

4.1%

3.7%

0.4%

Total

1,085,000

994,786

9.1%

-

-

-

*Includes segments not shown







For more information and news from Kelley Blue Book's KBB.com, visit www.kbb.com/media/, follow us on Twitter at www.twitter.com/kelleybluebook (or @kelleybluebook), like our page on Facebook at www.facebook.com/kbb, and get updates on Google+ at https://plus.google.com/+kbb/.

About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the industry.  Each week the company provides the most market-reflective values in the industry on its top-rated website www.kbb.com, including its famous Blue Book® Trade-In and Suggested Retail Values and Fair Purchase Price, which reports what others are paying for new cars this week.  The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies as well as governmental agencies.  KBB.com provides consumer pricing and information on cars for sale, minivans, pickup trucks, sedan, hybrids, electric cars, and SUVs.  Kelley Blue Book's KBB.com ranked highest in its category for brand equity and was named Online Auto Shopping Brand of the Year by the 2012 Harris Poll EquiTrend® study.  Kelley Blue Book Co. Inc. is a wholly owned subsidiary of AutoTrader Group.

SOURCE Kelley Blue Book

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Ca...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...