car sales

Car Sales Expected to Pick Up During Labor Day Holiday

Car sales down but prices have been setting records

NBC Universal, Inc.

Car dealers have struggled over the past few months during the pandemic, but things could be turning around.

Sales were down 20% but at the same time car prices have been setting records, according to a J.D. Power survey.

"It's not a depressed market right now," said Pacific Honda car salesman JP Bo. "It's very vibrant, to be honest with you."

Bo said that for months, the Kearny Mesa dealership struggled to get enough cars to fill the lot but that is changing. In the last two weeks, Bo said, they've seen 150 cars delivered to the dealership, which puts them at about 75 fewer cars than last Labor Day weekend.

Angel Aguiar thought it was a good time to shop for a car for his girlfriend: "Hopefully drive off the lot with a new car."

Charles Leix said the extended warranty on his car had run out, so he was looking for a new pickup.

"It may or may not be a good time, but I'm going to look around and see what I can get," said Leix.

Auto analysts say that some of the most popular selling automobiles are trucks and SUV's, which tend to be more expensive. The J.D. Power survey said the average price for a new car in August was $35,420. The increasing sales of those higher-priced vehicles may partly be due to lower interest rates.

For Bo, he's looking forward to his 34th Labor Day weekend at Pacific Honda.

"Labor Day, Memorial Day, Fourth of July -- we live for those weekends," Bo said.

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