Rebounding Sales in the Auto Industry – An Incredible Achievement

It wasn’t any secret the sales results in the auto industry in the spring were bleak at best and the future was uncertain.

The COVID-19 pandemic had begun, we were placed under a stay at home order, and many car dealerships weren’t ready for online sales and the logistics involved in contactless transactions. Thankfully, This didn’t last long and the auto industry found a way to rebound and capture an amazing number of sales this year.

Increases in Auto Sales Compared to Last Year

Even with the movement toward online sales and deliveries of vehicles to homes, you might not expect sales to show an increase compared to the 2019 numbers. Couple this with the number of people who lost their jobs in April and May that might still be out of work and it seems sales should be down. The opposite is true; October was the second month in a row that we saw an increase in vehicle sales when considering the year-over-year volume.

A Continued Trend is Expected

Because automotive dealers were capable of being versatile enough to create sales programs and environments where customers could feel comfortable buying in person or online, the expected trend for the full year of 2020 could show sales numbers that reach 14.3 million vehicles. That’s an incredible number considering how things looked back in the spring and summer months. If this number is reached, 2.5 million new vehicles will be purchased in November and December this year.

Car Dealers Handled the Pandemic the Right Way

While car sales were slower in the first six months of the year, those customers who were looking for a new car during that time waited and made their purchase in the last few months. This strong demand has created a scene in which most dealerships have vehicles in their lot for less than 50 days each. This is the lowest time for vehicles to be on a lot in eight years. This average means the flow of vehicles to dealerships is strong.

SUVs and Trucks are Flying Off the Lot

While the average time on a car lot of fifty days is the lowest in recent history, and even more impressive statistic is also part of this calculation. Currently, one in every five vehicles on the car lots around the country are only there for five days or less. This means that twenty percent of the new vehicles being sold are moving much faster than the rest.

Currently,77 percent of all new vehicles being sold are SUVs and Trucks. This popularity has led to a higher average price for new vehicles and allows us to know that customers are looking for more capability in the model they drive. These results show a rebounding of the auto industry which took a huge hit in the spring and summer. Sales are back up where they belong and look positive as we come closer to the end of this year and move toward the new models that will be part of the 2021 model year.