Carmakers and dealerships in the US reported sales paralysis in the days immediately following the terrorist attacks of last month. However, they also reported much stronger sales towards the end of the month, buoyed by cheap finance deals.
According to a report in Automotive News, zero percent financing, which began with General Motors, ‘has created a chain reaction among automakers and a sales revival at dealerships.’
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The Automotive News report says that the annualised new-vehicle sales rate has bounced back from 15.8 million units to 16.4 million units on the strength of cheaper finance.
While there will have been some incremental sales growth, zero percent financing seems to have drawn buyers to bring purchases forward too, prompting worries that there may be renewed sales weakness in the months ahead.
However, some forecasters say that October could be a strong month.
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