Domestic Vehicle Sales Lowest In 14 Months; Miss By Most In Over 5 Years

Tyler Durden's picture

Oops. While Phil LeBeau was proudly crowing about how great the auto industry 'was' doing, the actual data of how it 'is' doing printed with a dismal drop from Novermber's exuberance. Domestic Sales dropped to their lowest annualized level in 14 months with the biggest miss since Oct 2008! The story was very widespread, as SMRA notes, nearly ever automaker reported lower than expected sales... apart from:




and on the basis of cars sold per employed person... we have peaked...



Nearly every automaker has reported lower-than-expected sales for the month of December relative to our forecast and the consensus. At this time, domestic light vehicle sales are running at a disappointing low 11.3 million annualized pace, which compares with 12.6 million for November.

If taken into context, we can say that the strong selling pace in November pulled sales away from December. In September and October, domestic light vehicle sales fell under 12.0 million due to the impact of the federal government shutdown, slipping to 11.7 million for both months, as it negatively impacted on buying confidence.

In November 2013, sales recovered strongly to 12.6 million, perhaps too strongly to the detriment of December's sales. Therefore, if we average November and December together, we get 12.0 million, which is a respectable, though not spectacular, selling pace.

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Say What Again's picture


Everything is BULLISH


errr..  Everything is BULLSHIT

RafterManFMJ's picture

So it's finally time to buy! I sure hope they still make those Hummers; been holding out a looong time for one.

de3de8's picture

Maserati went from 10 to 21,bankster funded

kliguy38's picture

Pump it till ya dump it........and they're just setting up the "market participants" YOU......once the wool is long and thick the shearing will begin.......

insanelysane's picture

I think Santelli went off on clash for clunkers today.  He must have caught wind of a Part 2 initiative.

Dr. Richard Head's picture

Time to make the bailouts. - Dunkin Donuts Guy

disabledvet's picture

Nissan up huge. Ironic considering they're the only seller of an all electric entry level vehicle going on many years now. Should be interesting to watch Tesla scale the charts as well.

Handful of Dust's picture

I'm waiting for Barry's $28,000 vehicle subsidy then maybe I'll trade in my 1989 Chevy ... provided he throws in a shiny CD and crucifix I can hang from the mirror.

Emergency Ward's picture

Would a DVD of Obama speeches and a Plastic Obama dash ornament suffice?

RobD's picture

Obama Bobble Head doll, only bobbles from side to side.

BurningFuld's picture

It's caus' people are to fat to fit in their cars. They have given up leaving the house now!

I am Jobe's picture

True, can order pizzas, calzones and sandwches. Why leave the house

Deer Hunter's picture

Purchased my last new vehicle in 02, never again. Used for cash only.

WTFMOFO's picture

I hear ya, I've got a 2001 Toyota 4 Runner LTD and the wife a 2007 Toyota Sequioa LTD and both are bought and paid for and run like new....plan on driving them for another 5 years min.


kareninca's picture

We're still driving our 1996 Honda Civic, which we purchased new with cash.  In a few months it will be old enough to vote.  We've never owned another car.  I wonder if we'll get it to drinking age?  We've had no problems yet; admittedly we don't drive a lot and keep up on the maintenance.

I've read that if you keep a car for at least ten years, buying new with cash can be as economical as buying used.  No doubt there are a lot of factors, and cars differ.

mr.n3utr0n's picture

and then there's this:

U.S. auto sales hit 6-year high but December disappoints

yogibear's picture

Obama Phone


Obamacar - So many illegals and future supporters would ensure Hillary would be elected.

It's all about the Free Stuff Army.

QEen Yellen can just buy up all the debt created with printed money.



delivered's picture

Just three thoughts on this subject matter.

First is that with the majority of all auto sales dependent on customer financing, maybe the fact that the combination of declining real wages and new or "fresh" loans that actually do require a payment to be made (I know, a very novel concept in the US compared to the past four years when debt foregiveness was the rule of the house) are starting to hit home.

Second, the constant efforts to pull every purchase forward in whatever manner possible may finally be running its course. Think moving sales from Black Friday to Brown Thursday or sooner. Think auto companies offering every incentive available to drive sales. Think furniture stores offering free interest until 2018 now. I'm sure there are countless other examples but consumption has been pulled forward way ahead of actual earnings/wealth creation (thanks to ZIRP).

Third, maybe some people really started to take a look at just how much the ACA was going to really cost a month. Maybe $150, maybe $250, or maybe more. Whatever the final damage, it amounts to a figure consistent with a monthly auto loan payment. So healthcare or an auto, you make the call.

So who gives a shit about the weather, fuel prices, and even interest rates as I believe Ford was on to something when they indicated that 2014 earnings would be 18% lower. That supply has moved too far ahead of real demand and that auto makers may need to scale back expectations in light of what consumers can really aford.

RafterManFMJ's picture

By 2020 you'll be able to finance a car for a longer term than your mortgage...


thomasincincy's picture

and porta potty as an option

logically possible's picture

And that will be the new norm, because everybody will be living in their car.

Frostfan1's picture

Don't worry.....with great weather in January, this blip will disappear!!!!!!!!!

Non Passaran's picture

It must be the impact of the Bitcoin crowd who temporarily suspended purchases until Bitcoin reaches parity again.

rsnoble's picture

 Looks like financing for all has finally fucked everyone possible. Let's start charting the repos.

What's next?  96 months to pay your grocery bill?

Oldwood's picture

I wonder what the trade in salvage value of my dead body is worth in trade for a new car? Maybe I can can get carbon credits for it that will apply to the purchase price. Buy now and pay later.

walküre's picture

What are sales of bicycles? No wonder there's fighting over new shoes. Folks need to run faster and need better shoes when they can't pay for a new bike let alone a car. The fastest people on the planet are running in the African bush. If they don't outrun the leopard, they're dinner. Of course there's no obesity either in Africa.

When they say recovery, they really mean RECOVERY. We're starting right from scratch!

eucalyptus's picture

I believe the Maserati sales are up that much because they released the ghibli, which is roughly 30% cheaper than any of their previous vehicles.

It'll take away 550i, E500, A6 sales for those who will give up a german v8 for italian v6 that is more stylish and exclusive.

Wouldn't read too much into the maser bump.

Auto sales are crap; I'm in the market for new or used and have been tracking local dealership inventories for the past month and nothing is moving.

Smegley Wanxalot's picture

Yup.  Nothing's moving much, but these dealers act like you should kiss their asses.

I can gladly and easily make my current car (183k miles) go another 100k, and talking to these jackass arrogant dealers has convinced me to do just that.

rosiescenario's picture

"... apart from:



Well, there's the dribble down economy in action....there will be a large need for new mechancis if Maserati keeps on selling more cars....and, I might add, highly paid mechanics....

yellowsub's picture

If the Northeast sales was down, it's because of Hercules.  

Next on Obama's list, is the Affordable Car Act.

goldenbuddha454's picture

But don't worry, things are going to get better :)