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September 20, 2010

www.usedcarnews.com

Consumers Wait Until Sales Events By Ted Craig

Consumers today will make a purchase if they can get a deal. Or at least think that they can. Edmunds.com CEO Jeremy Anwyl told the Automotive Press Association in Detroit that events drive auto sales these days. He used the recent Labor Day weekend as an example. “August ended with a thud,” Anwyl said. Labor Day came late this year, landing on Sept. 6, but sales shot up that weekend. “(Consumers) don’t know what they’re waiting for,” Anwyl said. “They’re just waiting for the car to go on sale.” Anwyl said promotional prices might have been no better than average, but consumers believed they were. Edmunds.com staff calls that “buying the story.” “If the story and reality differ, the story wins,” Anwyl said.

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People want a reason to buy because they’re confused by uncertainty, both politically and economically. Most of the news in early August increased this uncertainty. But Manheim economist Tom Webb said reports in late August and early September showed more promise. “Consumer confidence increased, manufacturing indices rose, retail sales activity picked up, and even the employment numbers became less bad,” Webb said. “It appears that the summer stall will not Photo by Jeffrey Bellant turn into a fall retreat.” IF THEY CAN MAKE IT THERE: Outgoing NAAA President David Angelicchio, left, shares a moment with The downturn in auto sales incoming President Jay Cadigan during the group’s convention in New York City. Charlotte Pyle celebrates dampened some of the good becoming the president-elect with husband, Joe. The couple co-owns a pair of auctions in West Virginia. For more NAAA coverage, see page 6-13. news in August. Excluding autos, retail and food services sales were $301.7 billion, up 0.6 percent from July and up 4.8 percent from one year ago. With autos included, August 2010 sales were $363.7 billion, up 0.4 percent from July and up 3.6 percent from the prior year. In July, autos outperformed the other retail segments. But that was another month with a holiday to sell around. Anwyl said this consumer tendency to only buy on big news should mean flat newcar sales for October. The good news is used car sales could continue doing IN THIS ISSUE well as consumers switch from new. • Kelley Blue Book is reportedly on • Online auctions reported higher Used-car page views on the block. – Page 3 sales. – Page 14 Edmunds.com have out• Wholesale prices were flat and • A former auto mogul is headed to paced new-car page views by certified sales rose. – Page 5 prison. – Page 15 an average of 36 percent since August of 2008.


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