Both the car insurance and car sales markets could see marked activity this month, which may help encourage some who are on the fence to make such an investment feel a bit better about the prospect.
Vehicle transactions should rise by approximately 11.7 percent this month to more than 1.2 million units, a projection from Kelley Blue Book explained. This would put vehicle sales back on a positive track, as there was a drop in September. Last month ended the 27 straight months of yearly gains.
Many aspects of the market adjusted, making conditions more favorable for sales this month compared to the same period last year. One of these was the lack of negative effect of the government shutdown, while another is the lack of hurricane activity this year, the report noted. Hurricane Sandy made it difficult for car sales last year because of its extensive effect on the East Coast.
"The government shutdown didn't impact consumers growing appetite for buying new vehicles," said Alec Gutierrez, senior analyst for Kelley Blue Book. "The expectations were that car buyers would wait on the sidelines, but because of pent-up demand and credit availability, car sales are expected to increase 7 percent from last month."
With the continued improvements in the market, the seasonally-adjusted annual rate of sales is on the rise. This jumped to 15.4 million units this year, more than 1 million higher than the same month last year, the report noted. This was also greater than the 15.2 million units a month earlier. There is still a possibility of the industry reaching 15.6 million transactions by the end of 2013.
New car prices rise during September
Car market conditions continue to have other positive gains, as well. One of these is the rise in new vehicle prices, which continued during September. According to a report from TrueCar, the average price of sales during the month rose to $31,854. This was 5.2 percent - or more than $1,570 - compared to the same month in 2012. There also was an increase in the price level from August's level. This gain was nearly 2 percent - or $602.
"While September's sales didn't match those of the summer months, the prices buyers are paying continue at a record pace," said Jesse Toprak, senior analyst for TrueCar.