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Auto Industry Posts Large Gains in July 2014

Posted by Brian Berg Google+


In a recently released article by ABC news, the media outlet touted the double digit sales gains of automotive giants in the month of July.  The gains are being accredited to big discounts being offered throughout the month and being incentiviced through automobile mailing list offers.


While the only major automakers that didn’t see a gain were Honda and Volkswagen, many other major brands saw a great increase in sales.  Compared to July 2013, Hyundai posted gains of 1.5% while US automaker General Motors posted a 9% gain. The automakers that fared best in July 2014?  Toyota, Ford, Nissan and Chrysler all posted double digit gains!


Not only are auto sales up from the previous July, but in a report from Autodata Corp, July 2014 was the best July for the auto industry since July 2006.  The auto industry as a whole saw sales rise 9% in July 201.  It was the best July for the industry since 2006. 


July is generally a stellar months for dealerships as they prepare their showrooms to receive new inventory of the next model year vehicles and offer deep discounts on the current model year vehicles.  The gains may be attributed to the incredibly steep discounts being offered on previous model year vehicles this year.


The ABC News article stated “Incentives rose 8 percent — or $216 per vehicle — over last July, according to Jesse Toprak, chief analyst for the car shopping site Incentives averaged $2,774 per vehicle, their highest level since August 2010.  Ford, Toyota, Volkswagen and Hyundai were the most generous; GM and Honda spent less. Toyota was offering zero-percent financing on a five-year loan and $1,000 cash back on the Camry sedan. Ford offered $6,000 cash back on a new Expedition SUV.  And Chrysler was peddling a $99 per month, two-year lease on a Dodge Dart.”


Another cause for the gains could be the increase in zero-percent financing on loans.  With 13.5 percent of new car loans processed in July having zero-percent financing, the industry is seeing the highest level of these types of buyer friendly since 2010.


“Based on July's sales, J.D. Power and Associates raised its forecast for full-year U.S. sales to 16.3 million vehicles. That's approaching the peak of 17 million set in 2005. Auto sales have led the uneven U.S. economic recovery, with sales increases of 1 million or more vehicles in each of the last four years. But that pace is slowing. U.S. sales totaled 15.6 million in 2013,” the ABC News article stated.


Direct mail isn't the cause of the great upward momentum in the industry, but is a proven major advertising medium that gets buyers into a showroom and buying.  The medium can be used to advertise the dealership as whole, special incentives and other auto related marketing offers.  The "BB Direct Premium Automobile Database" allows an auto dealership marketer to contact their ideal targets through direct mail, telephone and email by pulling in the largest number of automobile types and selections in the industry.  Not sure who your ideal target is?  Our very skilled team of auto data professionals can help you determine your current buyers and create a marketing list of like-minded individuals increasing your odds for marketing success.  Also, if you're looking for a consumer mailing list or a business mailing list to promote any products or services via direct mail marketing, be sure to reach out to BB Direct's helpful list experts.