After struggling through an exceptionally difficult March, auto sales across the United States are starting to recover, Reuters reports.
According to analysts at research firm J.D. Power, retail sales stabilized during the first two weeks of April. Analysts made their determination after sourcing sales data from many U.S. auto dealerships.
“For the week ending April 19, retail sales were down 48% from the pre-virus forecast, an improvement of 3 percentage points from the week ending April 12,” J.D. Power analyst Tyson Jominy said.
It is believed approximately 300,000 new vehicles were sold during the first 19 days of April in the United States.
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In some parts of the country in March, auto sales declined by as much as 80 per cent, such as in New York. Interestingly, light-duty pickup trucks are proving to be the most resilient with sales down only 16 per cent in March. This is good news for automakers who produce lots of large gas-powered pickups, particularly given the falling prices of fuel.
Analysts believe sales in May will prove critical for the auto industry after a number of states relax stay-at-home restrictions and consumers flood in to buy vehicles. Sales are also tipped to be boosted thanks to incentives from most car makers, with the likes of GM, Ford, and FCA offering 0 per cent financing rates and deferred payment options for new car purchases.
Thanks to these incentives, consumers are taking out larger loans. J.D. Power reports that the average loan amount increased by $2,900 in the first two weeks of April compared with March.
