While analysts have said the automotive industry has been in recovery for months, February new car sales have sealed it: consumers are back in showrooms ready and willing to buy. Most car makers report that sales in February 2011 were up about 20 percent compared to the same time a year ago. The sales increase has the industry on track to sell over 13 million new cars and trucks this year—a level not seen since 2009's Cash for Clunkers sales extravaganza.
While sales are usually pushed by incentives, that wasn't the case for this February. TrueCar.com reports that industry-wide incentive spending for February was at its lowest levels since 2007. When automakers spend less on incentives, consumers feel the pinch. The average price for a new car in February was up $132 from the average price in January. It seems that car makers feel secure enough to dial back discounts and cash back offers.
While sales are usually pushed by incentives, that wasn't the case for this February. TrueCar.com reports that industry-wide incentive spending for February was at its lowest levels since 2007. When automakers spend less on incentives, consumers feel the pinch. The average price for a new car in February was up $132 from the average price in January. It seems that car makers feel secure enough to dial back discounts and cash back offers.