Though auto experts expected 2011 to be a strong year for car sales, January's retail figures have already exceeded these optimistic expectations, according to a J.D. Power study.
Using transaction data from more than 8,900 retailers, the organization estimates that this month's retail sales of new cars will come in at 632,100. This figure represents a seasonally adjusted annualized rate of 10 million units – a 2 million increase over the figure of January 2010.
Jeff Schuster, executive director of global forecasting at the organization, sees January's figures as a strong sign for consumer demand for new vehicles. Based on January's surprising data, J.D. Power has reportedly revised its original forecasts for total retail sales of new vehicles during 2011 to 10.5 million units from 10.4 million.
The recent expansion of car loans for people with bad credit may be contributing to the rising sales. Drivers who want to trade in their old vehicle for an upgraded model may want to research their car finance options to see what kind of deal they can get on a car loan.