The first half of the year was fantastic for auto sales and the strongest since 2005, with 8.5 million vehicles delivered. Online search and shopping site, Kelley Blue Book predicts it will be the biggest year for cars in over a decade.
Karl Greenberg from Marketing Daily reports:
“As July comes to a close, KBB.com predicts a 2.6% year-over-year increase for the month, to a total of 1.47 million units. Extrapolated to the entire year, with seasonal dips and spikes (or the “seasonally adjusted annual rate,” or SAAR, in car talk) taken into account it will be a 17.1 million year. That’s up from 16.4 million in July last year, and even with last month. Other good news for automakers: KBB also predicts retail sales will be 87.1% of volume, versus 85.9% last July.”
“J.D. Power, knocking the fleet-sale component out of the equation, says the retail-only SAAR for the month is 14 million units.”
“Dave Winslow, VP of digital strategy at automotive on-demand dealership software company Dealertrack Technologies, tells Marketing Daily that consumers are also doing a lot more digital and mobile shopping now, and that by itself is driving volume thanks to the comfort factor: more digital, pre-dealership paperwork means less sitting for hours in someone’s office.”
“People are spending more time shopping online and less time shopping in dealerships because of ease of use around researching, and financing,” he says. “It’s just easier to start that process online now.”
“While more pre-dealership activity is happening not only online, but on mobile devices, dealership staff are getting better at taking the baton from digitally driven leads, he says — adding that sales staff are more often using iPads and tablets to work up registration and titling.”
“More states are allowing electronic registration and titling now, and dealers are central to this process,” Winslow says. “And then we are seeing a lot more support from manufacturers in helping move dealers into the digital realm.”
“In June, per Dealertrack, there was a 20% increase in vehicle pages viewed on dealer sites; and a 47% increase year-over-year increase in customers coming from mobile engagement with dealers, and an 18% increase in electronic contracting.”
“More good news is that according to John Humphrey, SVP of the global automotive practice at J.D. Power, per-vehicle revenue is up, with the average new-vehicle retail transaction price so far in July at $29,673, “On pace to achieve a new record for the month,” he said, in a statement. The prior record was last year when transaction prices for July were $29,428, per J.D. Power’s dealership data bank, the Power Information Network.”
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