The automotive industry continues to show significant gains in April.
According to a recent report from TrueCar, a car-buying platform, vehicle sales are expected to rise this month compared to the year before. The data suggests that new light vehicle sales will hit nearly 1.4 million, marking a 7.5 percent increase from a year before but down 10 percent from a month prior. The sales translate to a seasonally adjusted annual rate of 16.2 million, up 9.2 percent from a year ago but a decrease of 0.5 percent on a month-over-month comparison.
"Automakers were determined to make sure March sales momentum continued in April, putting sales back on track for 2014," said Larry Dominique, president of ALG and executive vice president of TrueCar. "This month, the Asian manufacturers turned up the incentive dial, while the Domestic manufacturers remained more restrained."
Automakers were still pulling out all the stops trying to get consumers in the door. The report revealed that incentive spending per unit is expected to reach $2,751 by the end of the month, up 8.9 percent from a year ago and 1 percent from a month before.
More evidence of a strong April
A separate report from Cars.com, a vehicle-buying resource, expects April sales to exceed 1.4 million, marking a 10 percent year-over-year gain. Those sales would translate to a seasonally adjusted annual rate of 16.29 million, up 7.2 percent when compared to last year.
"The turbo switch finally flipped in April with new-vehicle sales expected to post a healthy 10 percent increase over 2013 after a virtually flat first quarter," said Jesse Toprak, chief analyst at Cars.com. "Car shoppers thawed out after one of the worst winters in history, and showroom traffic was strong once again. Demand for new cars was fueled by low interest rates, very attractive lease specials, and perhaps the best selection of models consumers have ever seen - across all brands."
According to the data, Nissan is expected to show the largest year-over-year increase, with sales likely jumping 15.5 percent in April.
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