2012 has been the best year forUSauto sales, since 2007, as a growth of 9% is expected in December, due to easier access to credit, rising home prices and pent-up demand. But then again, there might be concerns about consumers reducing their spending in January due to the fiscal cliff.
Around 14.5 million vehicles will be sold at the end of 2012, which is 13% more than in 2011. Analysts have predicted thatUSconsumer confidence and employment will improve only slightly in the coming year, which might slow down the profits to single-digit growth. According to Kelley Blue Book, a tax raise for middle-income households might affect the sales figures immensely.
The overall sales in December were not hampered as the annual sales pace will come to around 15.2 million vehicles, where the amount spent on large trucks constitutes a major share. Barclays Capital analyst Brian Johnson said that a healthy retail demand might generate a strong month.
TrueCar.com data states that large trucks had an average discount of 11.4 percent in December, 75 percent higher than the overall industry discount of 6.5 percent. Analysts said General Motors Co in particular layered on incentives to cut its inventory ahead of its introduction of 2014-model trucks in the second quarter of 2013.
HurricaneSandyhad delayed some sales previously in November but around 25,000 to 30,000 vehicles among those have been sold this month. Numerous shoppers shifted their purchase to the next month, adding around 300,000 to the annualized sales pace for December.