New-Car Sales Point to the Biggest Year Since Before Recession
Sept. 6, 2013—New car sales jumped 17 percent to 1.5 million in August, putting 2013 on pace to sell over 16 million vehicles for the first time since 2007, according to news reports.
With these skyrocketing numbers, the auto industry is beginning to consider the recession a thing of the past.
Ford, Chrysler, Nissan, Toyota, Honda and General Motors all posted double-digit gains in August. Lower gas prices (August averaged $3.57 compared to $3.69 last year), better interest rates and a Labor Day weekend flurry of sales drove August numbers higher than experts expected.
When the recession started in November 2007, the market was on track to sell 16 million vehicles that year. The industry hit its lowest point in 2009 with a total of 10.4 million vehicles sold but has been rising ever since.
Experts expect the rising trends to continue as the average age of vehicles on the road today is at an all time high (11.4 years) and as more people need cars for commuting as they get back to work.
The average price paid for a vehicle has also increased. August’s average price paid for a new vehicle was $31,657, compared to $28,500 in 2007.