Cox: Sales ‘Leap’ in February

By Staff Writer March 02, 2020

According to a forecast released by Cox Automotive, new light-vehicle sales volume is expected to rise nearly 6 percent compared to last February and 16 percent compared to last month. With leap year providing an extra selling day – 25 this year versus 24 last year, the gain is less impressive. After incorporating seasonal adjustments, the sales pace is expected to rise just slightly, from 16.5 million in February 2019 to 16.6 million this year.

According to Charlie Chesbrough, senior economist with Cox Automotive: “We’ve settled at a slower pace over the last few months, and our expectation is the new pace will continue this month and through 2020. We are in the late stage of the sales cycle, and demand is weakening even though incentives are relatively high.”

There are upside and downside risks to the forecast this month as sales in February can be greatly influenced by many factors, including harsh winter weather, according to Cox. Another risk to the vehicle market remains credit availability, particularly in subprime lending. Auto financing continues to remain strong, but a downturn in the economy will impact credit availability.

Cox reported that a higher than forecasted SAAR is possible given the strength of the underlying economy. Unemployment is at 50-year lows and the stock markets are at near all-time record highs. While fear around coronavirus is growing, it is unlikely to impact the auto market in February. The vehicle sales pace is expected to trend lower in 2020, even though economic and consumer conditions remain strong.

In February, new light-vehicle sales, including fleet, are forecast to rise to 1.33 million units, up about 75,000, or 5.9 percent compared to February 2019. When compared to last month, sales are expected to increase over 185,000 units, or 16 percent.

Rate this item
(0 votes)
Last modified on Monday, 02 March 2020 13:42

Trending News

Unemployment Claims Decrease

Unemployment Claims Decrease

Aug 06, 2020 Rate: 0.00

Auction Prices Rise for 15th Week

Auction Prices Rise for 15th Week

Aug 06, 2020 Rate: 5.00

Buffalo Auto Auction Teams with TPC

Buffalo Auto Auction Teams with TPC

Aug 06, 2020 Rate: 0.00