According to Ken Czubay, head of US sales, service and marketing at Ford Motor Company, no expected downturn in sales should result after the recent blizzard that hit the northeastern United States.
It is wrong to compare the effects of the February blizzard, which some news outlets have dubbed “Nemo,” to the damage which Hurricane Sandy inflicted on auto sales back in November. In the case of Sandy there was actual damage to infrastructure which affected Ford’s ability to produce cars. Also, Sandy incapacitated approximately 200,000 brand new vehicles, says Chief Economist Paul Taylor of the National Automobile Dealers Association. Nemo is not expected to cause any significant damage to infrastructure.
Car manufacturers say that whatever losses they suffered in October and early November from Hurricane Sandy was made up in the following few months.
The Nasdaq rose to its highest point in eleven years as optimism is mounting that the US economy is well on its way to recovery. The good news that fueled the Nasdaq rally was last month’s surge in the number of people hired, paving the way for what many analysts believe is a clear road to economic stability and growth.
The Nasdaq rose by 1.60 percent, reaching 2,905.34 on an increase of 45.66 points. Standard & Poor’s 500 Index grew to 1,344.66 as it surged by 19.12 points, or 1.44 percent. The Dow Jones industrial average climbed by 153.49 points to 12,858.90, which represents an increase of 1.21 percent.
Improved Economy Brings Higher Car Prices
The National Automobile Dealers Association is predicting that consumers are ready to pay more for new and used cars this coming year as the economy shows definite signs of improvement.
Used Cars in Demand with Low Supply
The NADA forecasts a rise of 6 percent for the average car to $30,000. An even higher price increase of 8 percent is expected for used cars, especially for SUVs and pickup trucks. For small second hand cars the price rise will be significantly lower, climbing by only 1 percent to an average price of $9,475.
More People Ready to Splurge
Luxury cars will most likely be in greater demand than in previous years as the economy keeps pushing forward, allowing people the confidence to splurge on more expensive cars. Used cars are in tight supply now because so few people purchased new cars during the years of the recession.
Paul Taylor, NADA chief economist, believes that US car sales will go up by 9 percent to 13.9 million in the year ahead. Low interest rates and enticing new products will most likely boost sales, according to Taylor.