December Biggest Sales Month for Vehicles in 2016
Dec. 23, 2016—December will be the biggest sales month for new vehicles despite a 2 percent decrease from last year, according to Kelley Blue Book. The vehicle valuation and information source estimates that December sales will total 1.6 million units, which will result in 17.4 million sales for 2016.
“December is shaping up to be the biggest sales month of 2016, even though it will likely fall short of last year’s record results,” said Tim Fleming, analyst for Kelley Blue Book. “At year-end, 2016 light vehicle sales should total 17.4 million, just 0.1 percent short of 2015’s record year. Sales for the month will be boosted by plentiful retail incentives featured in many holiday sales events across the country, and one last push to hit year-end sales objectives.”
Kelley Blue Book expects 2017 to be a slower year for sales, estimating sales in the range of 16.8 million to 17.3 million.
“Substantial incentive hikes this year haven’t resulted in retail growth, while inventories continue to grow,” Fleming said. “An increasing supply of used cars, especially off-lease units, is already putting pressure on residual values, which could impact the sustainability of today’s high levels of leasing. We are looking for manufacturers to cut production in the new year to better match slowing consumer demand and alleviate the need for elevated incentives.”