New car and truck sales are projected to increase by more than 30% during the current third quarter compared to the second, prompting some industry experts to predict a positive turning point for an industry hard hit by the COVID-19 pandemic.
Forecasts call for 3,850,707 new cars and trucks to be sold across the country this quarter. While those figures represent an 11% decrease from the third quarter of 2019, analysts are quick to point to the 30.6 increase from quarter to quarter.
"Third-quarter sales make at least two things apparent: Most of the doomsday scenarios forecasted at the beginning of the pandemic fortunately did not hold true, and the American consumer stepped up to become one of the many heroes in this chapter of resilience for the automotive industry, " said Jessica Caldwell, Edmunds' executive director of insights. "Consistently lower interest rates encouraged new-car buyers to pull the trigger on a purchase. Rising used vehicle prices also likely made the new car market more appealing for shoppers on the fence between the two."
Even as the industry shows signs of newfound life, industry experts note there is still much ground to be covered. Fleet sales continue to struggle, with Edmunds’ officials estimating that such transactions will account for roughly 11% of total sales this quarter, compared to 17.2% in the third quarter of 2019 and 13.2% last quarter.
"The last piece of the puzzle for the industry's recovery is fleet sales," Caldwell said. "Daily rental companies have understandably reduced or delayed orders as Americans continue to stay at home rather than embark upon business or air travel. It will likely take a bit longer for this side of the business to make as dramatic a comeback as its retail counterparts."
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