When most think of Labor Day, what generally comes to mind? Grilling? Sure. The traditional end to summer? Woefully, yes.
Great deals on cars? If your answer was no, you should think twice.
Labor Day was signed into law as a recognized federal holiday by President Grover Cleveland in 1894 to put an end to the Pullman Strike, a pretentious battle between railway workers and the U.S. Government over poor wages that literally shut down all transportation west of Detroit (1).
Thank heavens that law passed. How would we travel this weekend?
Since then, Americans have taken the long weekend to celebrate with parades, get-togethers and with the rise of commercialism, the opportunity to bargain shop. Businesses of all sorts have capitalized over the years, with car dealerships being no exception.
A unique combination of Labor Day sales coupled with model year end vehicle clearances have proven in recent years to save consumers a lot of money.
"Shoppers typically will find the perfect blend of discounts and selection during this late-August-to-September time period," says Edmunds.com Sr. Analyst Jessica Caldwell. "If they wait much longer, they might be able to find better discounts on a new car, but they'll find that inventory of those vehicles will be limited" (2).
The unofficial official end to summer should also prove to give a nice boost to the U.S. economy.
According to Angelo Young with the International Business Times, J.D. Power & Associates and LMC Automotive on Friday said the seasonally adjusted annualized rate (SAAR) for August U.S. auto sales could hit 16 million for the first time since November 2007. August U.S. auto sales will be reported on Sept. 3, after the Labor Day holiday.
The SAAR is a rate adjustment used for economic or business data that attempts to remove the seasonal variations in the data. Most data will be affected by the time of the year. Adjusting for the seasonality in data means more accurate relative comparisons can be drawn from month to month all year.
"Most automakers are seeing double-digit sales increases compared to last year as retail sales remain a bright spot, even with more new models entering the market," said Alec Gutierrez, senior analyst at Kelley Blue Book (3).
These current gains indicate that the U.S. auto market is well on its way to post-recession recovery. What does that mean for the average consumer? The potential for lower prices.
So, as we celebrate the long, Labor Day weekend with all the traditions that we normally do, consider doing the economy and yourself a favor and visit us at Barnett Auto Group in White Bear Lake, MN.
Grover Cleveland and the men of the Pullman Strike would appreciate it.
- Scott Stone
Sources:
1) Papke, David Ray (1999). The Pullman Case: The Clash of Labor and Capital in Industrial America. Landmark law cases & American society. Lawrence, Kansas: University Press of Kansas. pp. 35-37. ISBN 070060547. Retrieved on 8/26/2013 from: http://en.wikipedia.org/wiki/Pullman_Strike#Labor_Day.
2) http://www.prnewswire.com/news-releases/final-days-of-summer-sweet-spot-for-new-car-shoppers-says-edmundscom-220332091.html
3) http://www.ibtimes.com/august-2013-us-auto-sales-seen-hitting-highest-rate-any-month-2007-coming-close-15-million-units
Great deals on cars? If your answer was no, you should think twice.
Labor Day was signed into law as a recognized federal holiday by President Grover Cleveland in 1894 to put an end to the Pullman Strike, a pretentious battle between railway workers and the U.S. Government over poor wages that literally shut down all transportation west of Detroit (1).
Thank heavens that law passed. How would we travel this weekend?
Since then, Americans have taken the long weekend to celebrate with parades, get-togethers and with the rise of commercialism, the opportunity to bargain shop. Businesses of all sorts have capitalized over the years, with car dealerships being no exception.
A unique combination of Labor Day sales coupled with model year end vehicle clearances have proven in recent years to save consumers a lot of money.
"Shoppers typically will find the perfect blend of discounts and selection during this late-August-to-September time period," says Edmunds.com Sr. Analyst Jessica Caldwell. "If they wait much longer, they might be able to find better discounts on a new car, but they'll find that inventory of those vehicles will be limited" (2).
The unofficial official end to summer should also prove to give a nice boost to the U.S. economy.
According to Angelo Young with the International Business Times, J.D. Power & Associates and LMC Automotive on Friday said the seasonally adjusted annualized rate (SAAR) for August U.S. auto sales could hit 16 million for the first time since November 2007. August U.S. auto sales will be reported on Sept. 3, after the Labor Day holiday.
The SAAR is a rate adjustment used for economic or business data that attempts to remove the seasonal variations in the data. Most data will be affected by the time of the year. Adjusting for the seasonality in data means more accurate relative comparisons can be drawn from month to month all year.
"Most automakers are seeing double-digit sales increases compared to last year as retail sales remain a bright spot, even with more new models entering the market," said Alec Gutierrez, senior analyst at Kelley Blue Book (3).
These current gains indicate that the U.S. auto market is well on its way to post-recession recovery. What does that mean for the average consumer? The potential for lower prices.
So, as we celebrate the long, Labor Day weekend with all the traditions that we normally do, consider doing the economy and yourself a favor and visit us at Barnett Auto Group in White Bear Lake, MN.
Grover Cleveland and the men of the Pullman Strike would appreciate it.
- Scott Stone
Sources:
1) Papke, David Ray (1999). The Pullman Case: The Clash of Labor and Capital in Industrial America. Landmark law cases & American society. Lawrence, Kansas: University Press of Kansas. pp. 35-37. ISBN 070060547. Retrieved on 8/26/2013 from: http://en.wikipedia.org/wiki/Pullman_Strike#Labor_Day.
2) http://www.prnewswire.com/news-releases/final-days-of-summer-sweet-spot-for-new-car-shoppers-says-edmundscom-220332091.html
3) http://www.ibtimes.com/august-2013-us-auto-sales-seen-hitting-highest-rate-any-month-2007-coming-close-15-million-units
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