October sales again beat expectations

October sales again beat expectations

October sales were a repetition of the good news of the past few months for the industry. The monthês seasonally adjusted annual sales rate (SAAR) translates to a record of 18.2 million. Low gas prices again sent light truck and utility sales soaring, as those sales jumped 15 percent and car sales fell 2.6 percent, according to J.D. Power. Low interest rates and low unemployment helped with sales overall. Additionally, there were five weekends in October this year versus the four of October 2014 against which sales figures were compared.

–October was a huge month for the industry, smashing expectations and continuing its hot streak,” said Bill Fay, group vice president and general manager for Toyota Division.

All major automakers reported sales increases, many in the double digits: GM, up 16 percent, Ford up 13 percent and Fiat Chrysler up 15 percent. Toyota sales rose 13 percent, Nissan 13 percent and Honda 8.6 percent.

–Strong demand for our vehicles provided another double-digit sales increase in October, and Ford vehicles posted all-time record average transaction pricing of $34,600 per vehicle,” said Mark LaNeve, Ford vice president, U.S. marketing, sales and service.

Average transaction prices (ATP) rose more than 1 percent industrywide, with full-size SUVs, high performance cars, midsize trucks and vans rising more, said analyst Akshay Anand of Kelley Blue Book. But incentives were even higher, according to TrueCar, which predicted an average industry incentive per vehicle of $3,104. The ratio of incentive to ATP was 9.5 percent, a 14 percent increase from a year ago.