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
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
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 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo Silicon Valley Call for Papers is now open.
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that WineSOFT will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Cloud-based disaster recovery is critical to any production environment and is a high priority for many enterprise organizations today. Nearly 40% of organizations have had to execute their BCDR plan due to a service disruption in the past two years. Zerto on IBM Cloud offer VMware and Microsoft customers simple, automated recovery of on-premise VMware and Microsoft workloads to IBM Cloud data centers.
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...