Thanksgiving Weekend Bountiful for Auto Sales
CNBC Auto and Airline Industry Reporter
What happens when you combine mild weather with pent-up auto demand and a decent inventory of 2011 models?
A strong weekend for auto sales. Which is exactly how the last weekend of November is shaping up to be for dealers around the country. It should help November deliver the strongest monthly sales pace of the year.
And if you believe TRUECar.com, Black Friday will be the best day of the year to buy a new car. TRUECar estimates the average discount off of the MSRP of a new car sold the day after Thanksgiving will be nine percent.
What's driving the deals?
- 2011 inventory still sizable
About 20 percent of the new cars and trucks on dealer lots are 2011 models. Dealers want to clear it out and are offering richer deals to move those models, especially mid-size and large SUV's.
- Flexible financing
We're still a ways from the absurdedly easy financing terms of a few years ago, but financing continues to improve. Dealers are now able to finance a broader range of buyers.
- Moderate weather/three-day weekend
From coast to coast, it's generally clear weather. Combined with a three-day weekend for most of the country, and you get a lot of potential buyers who will wind up visiting showrooms.
Bottom line: watch auto dealers have a strong weekend and set themselves up for an end of year sales run.
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