February Car Sales Surprise Experts

http://www.forbes.com/sites/michellekrebs/2012/03/01/fie-on-high-gas-prices-february-car-sales-soar/

Climbing gas prices didn’t slow down February car sales a bit. Surprising auto executives and analysts alike, February car sales soared to a level not seen since February 2008.

... The higher-than-expected sales were not the result of higher incentives. Incentives were the lowest of any February since 2003, according to an analysis of car-shopping website Edmunds.com, at an average of $2,193 per vehicle. Nor were sales buoyed by inflated fleet sales as was the case in January. A normal rate of about 20 percent of total industry sales went to rental car, commercial and government fleets.

Rather car sales rose on the strength of an improving economy combined with pent-up demand finally being unleashed. Falling unemployment, rising consumer confidence, an improving housing market and wider availability of low-interest credit convinced consumers they were safe to make the big-ticket purchase of a car. Some of them had to do something. The average car on American roads is approaching a record 11 years; the average age of trucks is even higher. Automakers have been waiting for consumers to finally say enough is enough for their old rides.