Automakers End 2013 With Best Sales In Six Years

With domestic and international brands reporting solid gains in December, 2013, new vehicle sales finished the year on an upbeat note. The industry was on track to report its best sales numbers in six years, a welcome relief after the worst industry downturn since the Great Depression. A total of about 15.5 million vehicles were purchased by U.S. motorists in 2013, and forecasts for 2014 range from IHS Automotive’s conservative 16.1 million to as much as 16.5 million or more.

Significantly, an assortment of manufacturers finished last year reporting all-time best numbers, a list that included imports such as Audi, Subaru, Hyundai, and Kia. But at least a few automakers ended 2013 on a mixed note – Toyota, for one, reporting a 1.7 percent drop in December sales, though it was nonetheless up 7.4 percent for the year as a whole.

Automakers say a combination of an improving economy and job market, stable fuel prices, attractive new products, and low interest rates combined to boost sales last year and are setting the table for future gains in 2014.

Consumers were faced with steadily increasing sticker prices – in part reflecting the increased content in vehicles as consumers opted for more options – but also a sign of a return to more of a seller’s market as factories strained to meet demand.

On the positive side, makers flooded the market with lavish sales in the final month of the year, so the estimated average transaction price for light vehicles in December increased by less than one percent to $32,890, according to Kelley Blue Book. Also working in the favor of buyers: a rapid increase in the availability of loans to even credit-challenged buyers. And with current interest rates still low, monthly payments didn’t necessarily reflect the rise in vehicle MSRPs.

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