Retail New-Vehicle Sales Drop Dramatically in Early October
WESTLAKE VILLAGE, Calif.--Oct. 1, 20054, 2005--Retail new-vehicle sales in the first nine days of October were down 33 percent versus the same period a year ago, and down 44 percent versus the first nine days of September, according to the Power Information Network (PIN), the industry's premier source for real-time automotive monthly retail sales data.


The key drivers of this trend include a lack of high-impact incentives from the major automakers, higher gas prices, low inventory levels and a possible market adjustment due to exceptionally strong sales during the summer months, according to Tom Libby, senior director of industry analysis at PIN.

Retail sales of General Motors and Ford Motor Company new vehicles were down 57 percent and 45 percent, respectively, compared to early October of 2004.



"The aftermath of the employee pricing programs is having a dramatic impact on automotive retail sales in October," Jeff Schuster, executive director of global forecasting at J.D. Power and Associates. "A lot could happen between now and the end of the month, but at this point, we're on track for an October like we haven't seen since the early 1990s."

 

Guess we knew that was coming.

 

Gee, how did that happen? Really my 2 year old could have predicted that.

 

I looked through the very same dealer's inventory.

A truck that was priced at 28.5k a few weeks ago is at 31.5 k now. Gas prices haven't eased up that much.

I figure come December or January, they'll be begging people to take these things of their hands, and 10k rebates will be common.

 

Thanks, Art- I always appreciate good news!

"Really, Mrs. Lincoln, other than THAT, how did you enjoy the play?"

 

I posted these numbers with the HOPE that Ford INCREASES the incentives so as to allow MORE potential buyers to "jump in" and buy. Which should HELP, not hurt you dealers, because the incentives are for the most part, financed off the "backs" of Ford, not the dealers. Correct?

 

If any Ford dealer has any left over 05 150s there giving some heck off a deals on those right now. The savings are pretty susbstantial. Check em out. As the year gets closer to the end the deals are good on leftover 05s.

 

Art, I'm with ya, but trying to figure out what Ford's going to do with incentives, let alone hoping to prompt them into a certain action, is absolutely impossible. I've only been doing this for 20 years, and no pattern (or any true sense of reason) has ever revealed itself to me in factory rebate announcements. Any time I was 100% certain they would zig, the zagged. It's enough to put you in the looney bin! Ernie, care to add your $.02? (I know you're lurking out there, on the West Coast, sipping your herbal tea and watching the seals frolic in the Pacific...)

 

Look at the current lease deals... a new XLT Scab 4X4 for $199 a month for 24 months!!

 

Recently had a discussion with an upper level marketing guy at GM in Detroit. GM is planning on dumping the incentives and trying to sell by lowering the MSRP on all the lines. He said that the rebates are killing them (DUH) and that they wanted to move to a more static pricing model. I'm sure all the others will follow suit if it works.

Personally, I find it offensive that Ford can discount a truck $10K and still make money. Hardly a level playing field for those lacking good negotiating skills.