The 2020 fourth quarter new vehicle sales is projected by Edmunds analysts to be up by 2.8% compared to the third quarter despite major setbacks brought about by COVID-19.
Yet, that would translate to a 5.7% drop in sales from Q4 of 2019.
Car shopping experts also project that a total of 14.4 million new cars and trucks will be sold this year, which would be a 15.5% decline from 2019 and will mark 2020 to be the lowest sales year for the automotive industry since 2011.
Edmunds experts remain hopeful as they note a steady growth in the average transaction prices (ATP) and expect ATP for new vehicles will exceed the $40,000 mark for the first time on record in December. Most car shoppers continue to show having no problem with upsizing their purchases in favor of bigger vehicles with more amenities.
"Thinking back to the dire state of the market at the outset of the pandemic, it's such a testament to the incredible durability of the entire automotive industry — and the resilience of the American consumer — that we've seen such a healthy rebound in new car purchases this year," Jessica Caldwell, Edmunds' executive director of insights, said. "A big comeback story of 2020 is without a doubt the recovery of retail vehicle sales, which have nearly returned to pre-pandemic levels."
Experts also look forward to a better 2021 despite any possible challenges that may arise, according to PR Newswire.
"Even if we face another wave of retail shutdowns, the good news is that dealers are far better prepared now for selling virtually than ever before," Caldwell said. "And vaccines on the way should only help keep consumer confidence high."
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