October retail sales of new cars should be even higher in the U.S. for the year 2010 as active buyers to avoid a drop in sales by mid-month, JD Power and Associates, said Friday.
The company expects auto sales to individual consumers forecast to hit 756,300 units in October. Total sales, which do not include sales of car rental agencies and other fleet customers, leading to a seasonally adjusted annual rate of the standard of 10.2 million units. The first high, 9.5 million, occurred in September.
“Unlike in July, August and September, which saw some weakness in mid-month, the robust pace of sales in October continued until the second week,” said Jeff Schuster, executive director of global forecasting for JD Power, said in a statement.
JD Power forecasts light vehicle sales to increase by 14 percent since October of last year, sales to fleet customers, including 18 percent of the total.
“Despite the strength of high unemployment and low levels of incentives, improvements in the automotive market continues in October, suggesting that consumers are discounting the negative sentiment,” said Schuster.
However, JD Power lowered its full-year sales forecasts for 2010 and 2011 the rate of economic recovery has not met expectations.
The company now expects full-year forecast for 2010 retail car sales totaling 9,100,000 vehicles, a small drop from the previous projection of 9.2 million euro. Total vehicle sales, including fleet sales, provides a total of 11.5 million vehicles, down from 11.6 million previously forecast.
The country in 2011, gross domestic product is expected to equal only to 2010 the growth rate of about 2.5 percent, according to JD Power. As a result, the company has reduced its forecast for 2011 car sales total of 13.2 to 12,900,000. The retail sales forecast by JD Power for 2011 was adjusted to 10.5 million vehicles from 10.7 million euro.