Salient to Investors:
Automotive News reports that 3.27 million unsold cars sit on lots across the US, the most in almost 5 years and versus 2.7 million a year ago and 1 million more than in the summer of 2011.
Interest rates are still relatively low, car loans are easy to come by, even for those with poor credit, and 100 million cars in the US are 7 to 12, the sweet spot for high-maintenance repairs.
Kevin Tynan at Bloomberg said at last month’s purchase pace, dealers can sell the current backlog in a manageable 61 days versus 75 days in January.
August is not the best time for dealerships to be full, as most 2014 models roll out in September. Dealership lots that stock American automakers appear to be ripe for bargain seekers.
Click here to receive free and immediate email alerts of the latest forecasts.