Car sales are up at GM – and prices may soon follow
More Americans are investing in cars, and thus, in auto insurance. That's proven by the latest numbers reported by General Motors: the company is seeing sales of its vehicles swing upward dramatically.
According to a press release, the company delivered more than 267,000 vehicles during June alone in the U.S., up by roughly 1 percent – a significant amount – when compared to figures from 2013. Retail and fleet sales were also up, according to the report. That comes even though there were two fewer days for sales in June than there were last year, further illustrating the strength of the market.
"June was the third very strong month in a row for GM, with every brand up on a selling-day adjusted basis," said Kurt McNeil, U.S. Vice President of Sales Operations. "In fact, the first half of the year was our best retail sales performance since 2008, driven by an outstanding second quarter … It's clear that our commercial and small business customers are expecting a strong second half of the year and they are building their fleets to meet demand."
Auto prices may be on the upswing, according to another recent report
Another recent report, from Kelley Blue Book, warned that car prices may be on the rise alongside car sales – which would certainly make a difference next time you compare car insurance quotes. For instance, the analysts at that firm – who cited the GM sales rates in their explanation – found that new-car prices have gone up by roughly 1.4 percent since June 2013.
"Most notable in June, General Motors posted a solid 5.4 percent year-over-year gain, helped by its truck and SUV lineup," said Tim Fleming, Analyst for Kelley Blue Book. "The Chevrolet Silverado's average transaction price is up 7.9 percent, while the new Tahoe and Suburban have climbed 10 percent from last year."
In fact, car prices are even going up on a month-by-month basis: according to Kelley Blue Book, June 2014 car prices were on average more than $100 higher than the prices they were in May!
"Most major automakers showed positive growth for June 2014, as the market continues to shift toward utility vehicles this year," said Alec Gutierrez, Senior Analyst for Kelley Blue Book. "SUV and crossover share increased more than two percentage points in 2014 to comprise one-third of the market."
Clearly, the car industry continues to gain strength – which might lead to slightly higher prices for all those looking to buy a new car.