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Higher Auto Sales Encouraging Sign for Economy?

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    Edmunds.com senior analyst Jessica Caldwell breaks down August auto sales.

  • Duration 3:17
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Thank you very -- star.

All right well US auto makers revved up strong sales in August for rebounded from -- -- July with sales up 13% last month compared to a year ago sales for General Motors up 10% year over year and Chrysler topping estimates as sales rose 14%.

From last year -- the company's best -- sales numbers.

In five years so do these sales mean you should be investing in order stocks -- Jessica Caldwell senior analyst for -- dot com joins me now.

-- Jessica we look at the zero Vietnam is impressive but wasn't that a year ago was so all -- so that these numbers of perhaps looking better than they really out.

Plus the case -- -- way to -- -- strong.

Month this month especially compared to last August but if you look at retail numbers that's -- regular people out -- buying cars.

They're the strongest that they were all year when you seasonally -- so that indicates people are buying cars and I think that's good news for not owned auto industry but the overall economy.

How they've -- high gas prices play into this and which of the auto makers benefited from that.

What discipline of the year -- ten -- -- seasonally people start to buy more trucks and suvs but if you look at August sales very strong numbers for compact car sub compact cars.

And all of the companies now offer pretty compelling products and those segments so they all got a pretty good boost for you know -- from that and I think you know when you look at -- numbers.

They're the top selling compact car you know of the month and it's not a brand historically that you equate with smaller vehicles.

By all accounts consumers are Jessica have less debt that -- have been quite some time.

Which is encouraging but does this mean banks some more willing to lend as well as that health auto sales.

That's certainly helped and you know credit loosening as it is definitely helps people.

-- vehicles also people that are and that's sub prime category that's definitely grown from where it has been over the past -- So I figured -- scene of the you know the auto market in terms of financing is opening up so people that I driving those old cars six -- and eight years old are finally able to trade -- -- -- buy new ones.

And what about the incentives that I know there's some good ones out that the new GM had -- no haggle pricing a money back guarantee.

Of those really paid off.

While this remedy start to see the old model years on this case 2012.

Be sold down so there definitely were good deals out there we're also seeing these other -- incentives we call them.

So you know it and sentenced to specific dealers like stair step programs those are out there the automakers are spending money on not always reported -- harder part on those because they're very targeted.

But you know if you look at incentive spending today compared to -- wasn't 2009 it's definitely a worlds away -- stuff.

France so are we looking going forward that what do you see on the horizon.

Well I think we can be optimistic because if you look at what's driving -- right now is people coming and -- you know have an old car they need a car I mean obviously people can't go without their vehicle and that's really what's driving the market so when you combine that with credit losing enough people you know opting for a longer vehicle loans.

Lending got you know that bodes well it's it's true growth not just you know fleet sales -- -- -- -- All right so -- some.

Solid -- in these sales numbers are OK Jessica Caldwell and -- senior analyst with Edmunds dot com thank you so much -- --

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