2018 started with a positive note for the US auto industry. The auto market saw strength in January, but the sales fell in February. Are you involved in the auto industry? Do you need a reliable and affordable automotive merchant account? This article will help you with this.
US Auto Industry: What About an Automotive Merchant Account ?
In 2017, nearly 17.13 million vehicles were sold to customers in the US. The number was down from 17.5 million units in 2016. Sales dropped 2% from last February to 1.3 million, as Autodata Corp. reports.
The three biggest automakers based in the US spoke about a drop in US new vehicle sales in February. Some big automakers spoke about some decline in price incentives in the same month. However, Toyota, Subaru, and Volkswagen reported YoY (year-over-year) sales gains.
Auto companies should focus on keeping the right balance between retail and fleet sales. This is important for protecting profit margins and market share. Fleet sales lead to lower profit margins for auto companies as compared to retail sales.
If you’re a merchant in the auto industry looking for an automotive merchant account, turn to a true professional in the field. With a reputable merchant services provider, you can get the best terms and rates for payment processing.
Auto Sales in February 2018
In February, the new vehicle sales of General Motors went down 6.9% from February 2017, at 220,905. Rival Ford sales dropped 6.9% to 194,132. Fiat Chrysler also saw a dip in sales: down 1% from 2017, at 165,903.
According to Jessica Caldwell, analyst at Edmunds, (the auto consultancy), automakers are working on figuring out the right balance between keeping sales strong and becoming too dependent on costly incentives. The industry hasn’t lost its good health yet.
The figures show that the total US vehicle sales in February were much higher as compared to the 1.15 million vehicle units sold in January 2018. The reason was partly associated with the fact that auto sales at the beginning of the year are usually softer due to high holiday discounts offered by auto companies at the end of the year.
Author Bio: Business Funding expert, Michael Hollis prides himself on being able to help the backbone of America; small business owners. When he isn’t helping merchants, you’re more than likely to find him scuba diving the California coast or eating at one of LA’s tasty Vegan restaurants.