Analysts believe Hurricane Irma and Harvey could contribute to the first month of positive new vehicle sales growth in the United States.
For the first eight months of the year, car sales throughout the nation have fallen from 2016 but Autonews reports that the flurry of car owners in Texas and Florida looking to replace their vehicles will prove to be a godsend for carmakers.
Edmunds believes September sales could be 0.4 per cent higher than 2016 while Kelley Blue Book estimates a 0.7 per cent jump in sales. If accurate, the successful September should push the annualized selling rate to approximately 17.5 million units.
Speaking about the impact of the two disastrous Hurricanes, vice president for manufacturer relations at Group 1 Automotive Inc, Pete DeLongchamps said “Business has been very brisk at our 26 dealerships [in southeast Texas] this month. That’s true for both new and used vehicles.”
It is reported that approximately 600,000 vehicles will be purchased in the wake of the hurricanes, 200,000 of which will be new cars.
“This is a great opportunity for the automakers … as this will lead to a reduction in the excess supply that’s been on the market,” said Cox Automotive chief economist Jonathan Smoke.
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