NADA: Outlook for New and Used Vehicle Sales Upbeat
NADA CHIEF ECONOMIST ON NEW-VEHICLE SALES
WASHINGTON (April 1, 2010) - The following is a statement from Paul Taylor, chief economist with the National Automobile Dealers Association (NADA) on new-vehicle sales:
“The March data shows a welcome increase in new-car sales, reflecting in part some 'catch-up' sales from snowstorms that froze out activity from Washington, D.C., to Bangor, Maine, in February. Strong sales from major automakers in March led to overall gains of more than 20 percent.
“March sales will also reflect consumers with 'cabin fever' getting out to new-car dealerships. And April new-car sales will provide an indication of what the economy will support without intervening factors, such as 'catch-up' sales. March, and to a lesser extent sales in April, will reflect the current incentive surge launched by Toyota and Honda.”
NADA Used Car Guide analyst on the used-vehicle market
WASHINGTON (April 1, 2010) - The following is a statement on the used-vehicle market from Jonathan Banks, senior director of editorial and data services for NADA Used Car Guide:
“Used-vehicle prices continued to follow an upward trend during March. Most indicators suggest the used market will continue to support high used prices. However, new-vehicle incentives at the current levels will cause the resale values of used vehicles to decline because car shoppers will shift from the used to the new market, while at the same time the used-vehicle supply will increase from trade-ins.
“An indicator to watch will be the new vehicle Consumer Price Index and new-car incentives. If manufacturer incentives drive stronger new-vehicle sales, used-vehicle prices will moderate in the wholesale lanes at auctions.”