Pent-up demand brings customers to car dealerships

[Omaha Steve]

Source: AP-Excite

By TOM KRISHER

DETROIT (AP) - Car dealers are getting a surprise end-of-the-year bonus: More Americans are replacing old cars and trucks, enlivening a normally sleepy time for auto sales and putting November on track to be the industry's strongest month of the year.

Dealers and analysts say people are finally getting rid of cars and trucks they've held onto for more than a decade. That demand, plus attractive lease deals, an ample supply of Japanese models and promotions on remaining 2011 models have drawn buyers to showrooms in large numbers the last two weeks.

"We're seeing the most showroom traffic that we've seen all year," said Ed Williamson, part-owner of two Miami-area GM Buick-Cadillac-GMC dealerships.

The spike in activity comes after months of sputtering sales. Consumers have been reluctant to take on major debt such as car payments because of the uncertain job market. Unemployment has been around 9 percent for more than two years with no sign of significant improvement.

Read more: http://apnews.excite.com/article/20111116/D9R243PG1.html

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In this photo taken on Tuesday, Aug. 30, 2011, new cars are seen on display at a Ford Dealership in Orlando, Fla. November is shaping up to be the strongest month for U.S. auto sales this year as more Americans decide to replace aging cars and trucks.(AP Photo/John Raoux)

[DainBramaged]

1. Dupe sorry

[DainBramaged]

2. Holy shit so much of that article is wrong (not your fault)

1) HUGE shortage of Honda and Toyota models. They haven't caught up since the tsunami and the flooding in Thailand has shuttered parts plants further hurting their assembly here.

Honda cuts US, Canada production by half as Thai flooding hurt parts supply

http://www.chinapost.com.tw/business/company-focus/2011/11/02/321670/Honda-cuts.htm


Toyota, Honda to slump into '12

http://www.autonews.com/apps/pbcs.dll/article?AID=/20111114/OEM01/311149935/1400

2)GM has cut way way back on incentives and lease deals, as has Ford for the most part, since the cars are the best in history and heavy incentives are no longer needed to sell them

3)GM sees Nov. sales accelerating to 14M pace


Light-vehicle sales in October rose to a seasonally adjusted annual rate of 13.3 million, matching February's pace that was the best since August 2009 when sales were boosted by the U.S. government's "cash for clunkers" program, according to Autodata Corp.


Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20111115/RETAIL01/311159764/1448#ixzz1dxuF5jvt


No where can I find anything in Automotive news or even the press releases of the big three that suggests that because of pent up demand cars are selling and people are trading in 10 year old cars.


4) There isn't an ample supply of 2011 models thanks to smarter production by ALL of the automakers and shortages suffered by the Japanese.


Industrywide U.S. sales rose 10 percent this year through October to 10.54 million cars and light trucks, according to the Automotive News Data Center

I don't think we're going to see any more of a push than what we've already seen.


Thanks and all my best.

[canoeist52]

3. Well, there's pent-up demand in many necessesary consumer goods.

We've had to replace almost every appliance in the house in the last two years. Two cars in my family needed replacing this year, one from old-age wear was replaced with a used car, and one was totaled in an ice-related accident and was cheaper with the financing rates to buy new.

This week, my vehicle got a death sentence and only has a few month to live. I'm looking for a USED car though -can't afford new anymore. That's three cars in my family.

[DainBramaged]

4. You missed the point, but that's OK.

:eyes:

[harun]

5. +1

[No Elephants]

6. Hard to understand how perspectives can be so different.

Thanks.

[Sherman A1]

7. Like everything else there never is just one answer

You are correct in your assessment of the production side with no doubt, however there may be some pent up demand as the OP indicates.

It is never just one thing....

[Kolesar]

8. Presumably, Tom Krishar the reporter has heard of "pent up demand" from "dealers"

That presumption could be wrong.
I would bet that there was no scientific poll.