ARLINGTON, Va.—Vehicle sales increased dramatically in September, rising to 18.57 million seasonally adjusted, annualized units, up from August's 16.14 million.
NAFCU Research Assistant Yun Cohen credits the surge to replacement demand in hurricane-hit areas.
"Vehicle sales exceeded expectations in September as replacement demand rose in areas affected by Hurricane Harvey," said Cohen in a NAFCU Macro Data Flash. "According to Edmunds, new-car sales in Houston spiked 109% in the three weeks immediately following the hurricane. On the other hand, the Southeast region, which was affected by Hurricane Irma in early September, saw a 16% decrease in sales, according to J.D. Power.
"Sales in Irma-stricken regions are expected to rebound in the coming months as buyers complete delayed purchases and replace damaged vehicles. While replacement demand helps to trim down some excess inventories, automakers are still pressured to increase incentives," Cohen added.
The sales data, released this week by Autodata Corp., show that five of the six largest automakers reported increases in their year-over-year sales numbers. Toyota reported the largest gains in sales at 14.9%, followed by General Motors (+11.8%), Nissan (+9.5%), Ford (+8.9%) and Honda (+6.8%). FCA's (Fiat Chrysler Automobiles) sales were down 9.7% versus last year.
According to J.D. Power, the average incentive spending per unit reached $4,050 in September—surpassing the previous record set last November.