August auto sales came in better than expected as new products lure customers to dealerships says Ed Hellwig, executive editor at Edmunds.com
I get auto sales came in better than expected despite Labor Day be excluded from the big ears. Was bringing customers through The Daily Show rooms let's act and held it executive editor at Edmunds dot com. And thanks so much for joining and that's really appreciate it. Thanks for having me. So and had dinner later Labor Day and one less selling day compared to a year ago have on sales. Very slight impact actually with. We had a really strong month. And actually almost equal last years August which like that had the extra selling day I think we're really pain exceptionally strong month. So far is expected to come in about seventeen million this would be about the fourth month in a row that is done though what. Driving this is it. I Dillard's and continue or gas prices. Greater consumer confidence in the economy in the labor market was fine. I think gas prices being as well as they are is really a big driver. Especially given the mix of vehicles that we're seeing. Lot of crossovers suvs. Trucks are really strong sellers this month again and I think that just shows that people are willing to. Maybe just find a bigger vehicle and they might felt comfortable with a year ago. And also you know the economy still going wow and there's also a lot of new product that is enticing more customers and so. They're willing to pay more do you see. Customers. Appetite to pay more against four adds it in different accessories going forward. Some of that has to do with the new product typically when the new products come out. To customers in Dayton those are looking at the IA trim level models. So that made slow down a little bit as some of this new models kind of move into the market a little bit further but. You know and even in some of that categories that aren't traditionally high price categories like small compact cars. And small suvs. Manufacturers stepped up and added more features and tired from holes to even those lower priced vehicles. And consumers are responding. Where we in the vehicle replacement cycle and a lot of consumers held off buying cars during the Great Recession. Are we still early in the vehicle replacement cycle or. Do you see the strong sales have waning the next year or so out. That's hard to tell I think we're kind of almost in the middle of it so we're seeing debate sales numbers. And it's hard to tell it's gonna be a year maybe a couple of years before that evens out we had a lot of pent up demand for a long time. So I think in this feels via a lot of replacement vehicles or replacement sales going on for quite some time. Wit that that strong sales performance what are the head wins for the idol market going forward. Certainly at gas prices jump up significantly backed slowed things down quite a bit. Obviously we had some ups and downs in the stock market recently if those that continue. Be that volatile stock market takes a significant. Dropper a longer period of time that all true anyway overall sales. But as long as me those stage you men and manufacturers consider. Or keep rolling out the new models like the app and it ankles knees that is sales were at least through the end of the year. Thanks so much and we appreciate you. Mr. That and held wake executive editor at Edmunds dot com I'm church here Brantley this is orators.