Once again, auto sales outpace the economy

Once again, auto sales outpace the economy

The economic recovery is slow, companies arent hiring, and Capitol Hill is dysfunctional. But through it all, Americans are buying new cars and trucks. Indeed, March was the best month for auto sales in five years, and the SAAR (seasonally adjusted annual rate) was a respectable 15.27 million, up from 14.1 million in March 2012.

As housing improved, so did sales of trucks and crossovers. At GM, crossover sales were up 62 percent in March. The Detroit Three outperformed the rest of the industry. But the price of a gallon of gas was about 30 cents less than a year ago, setting back hybrid and electric vehicle sales.

The story is the same as it has been, said Edmunds.com analyst Michelle Krebs. Pent-up demand from old vehicles on the road is unleashing; credit is readily available at cheap rates and to a wider array of consumers; and new products are resonating with consumers. The first wave of income tax refunds, averaging $2,827, also brought consumers to showrooms.

Transaction prices were the second highest ever, averaging $31,097 for the month, up $339 from March 2012 and up $129 from February 2013, according to TrueCar. (The record was set in December, at $31,228.) Incentives fell 1.7 percent from March 2012, to $2,523 per vehicle.

The list of the top ten best-selling vehicles was led by two pickups, the Ford F-series and Chevrolet Silverado. The next three were midsize cars: Nissan Altima, Toyota Camry and Honda Accord. Rounding out the list were the Dodge Ram pickup, Toyota Corolla/Matrix, Ford Fusion, Ford Escape and Honda Civic.