While Canadian vehicle sales are expected to reach record levels in 2013, healthy demand south of the border, has also contributed to significant gains. According to Kelley Blue Book (KBB), new vehicle sales are expected to improve 4.7 per cent year-over-year once the figures are in for December 2013. That would place demand at 1.42 million units, and a 16 million seasonally adjusted annual rate (SAAR) according to KBB.
December is projected to bring the 2013 sales total above 15.63 million units, an 8 per cent improvement from 2012. In addition, a 16 million SAAR would make this month the highest December since 2006, when it was 16.6 million.
“Similar to November, sales will be heavily skewed toward the final week of the month as automakers and dealers try to beat year-end sales targets,” said Alec Gutierrez, senior analyst for Kelley Blue Book. “For consumers, this is generally the best time of year to purchase a new vehicle. Dealers are trying to clear remaining 2013 model-year stock, which is 26 per cent of current inventory, according to AutoTrader.com listings.”
As we progress further into 2014, sales are expected to continue improving — Kelley Blue Book anticipates that the industry will surpass 16 million SAAR for the first year since 2007. Growth will slow from recent years — however, the initial estimate from Kelley Blue Book is that demand for 2014 will reach 16.3 million units, up 4.3 per cent from 2013.
