Recent Car Sales Impacted by the Downturn in the Economy

The latest reports by the Bureau of Labor Statistics suggest that there are nearly 15 million people currently unemployed. In addition, there are many others who have experienced a reduction in their income. Add to that the amount of money that people have lost in the housing market, stock markets and other various investments, and it is easy to see why car sales would be dropping.

The downturn in the economy is having an impact on vehicle sales around the country. General Motors reported just under a 25 percent drop in vehicle sales for August. Toyota was hit the hardest, because of the massive recalls they endured. Yet, across the board, the automakers are reporting sales declines, to the tune of almost a 25 percent collective decline for the month of August. When you compare sales from August 2010 to that of one year ago, they have dropped nearly 18 percent.

With the economy in the slumps and consumer income not keeping up, many people are skipping vehicle purchases altogether right now, or holding back to see what will happen next. Those who are shopping for a new vehicle are looking for some hefty incentives, rebates and deals that make them feel like it’s the best time to make the purchase. Auto industry professionals had projected earlier that they would reach 11.5 to 12 million annual sales. Now they may be re-thinking that estimate, at this point; because, with months like August, they are having difficulty reaching those sales numbers.

Those that do opt to buy will be seeking out bargains and deep discounts. Likewise, once making the purchases, they will also be looking for bargains in such places as auto insurance rates. Those who opt for making new vehicle purchases now many want to look into protecting their investment with gap insurance coverage, which is a policy that will pay for the difference of what is owed on a vehicle and what it is valued at.

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