41 economists polled by Reuters expect Oct seasonally adjusted annualized rate to be around 13.2 million vehicles, up about 9 percent from the year earlier. In September, the sales rate was 13.1 million.
Analysts said October's likely stronger sales comprised also driven by the greater availability of vehicles arrived at by Honda Motor Co (7267.T) and Toyota Motor Co (7203.T), after the industry recovered from Japan's March earthquake which triggered a shortage of auto parts.
"We think there was some pent-up ask held over from Honda and Toyota die-hards who waited to buy those and in October there was growing armory," Edmunds.com analyst Michelle Krebs said. Auto sales are an early indicator each month of U.S. consumer demand.
But Krebs added that Honda's rebound could be short-lived after severe flooding in Thailand activated a shortage of crucial electronic parts.
The flooding will not hit October sales, but it may affect Nov and Dec U.S. auto sales, particularly at Honda, analysts said.
Honda withdrew its 2011 financial outlook and cut North American output by half from November 2 to November 10. Honda also pushed back the sales date for its 2012 CR-V crossover, the company's entry in the hot-selling compact SUV market.
"It does seem more severe than we initially believed," Jesse Toprak, Truecar.com analyst, said of the impact of the floods. "Honda has a lot riding on the CR-V and it is a potential constraint in Honda sales for the next several months."
Last week, Ford Motor Co (F.N) said it expected its product to fall by 30,000 vehicles due to supply shortages linked to the floods.
Still, overall U.S. sales over the remainder of the year will benefit from both rising applied car prices and the increased need to replace aging vehicles, analysts said.
U.S. auto sales have been trending higher since June when the annualized sales rate dipped to eleven.6 million vehicles. Better offerings from the likes of General Motors Co (GM.N), Chrysler Group LLC (FIA.MI) and Ford are also boosting sales.
The average vehicle on U.S. roads is almost 11 years old, two years older today than the average in 2007, and at a few point those cars will break down and spur new car sales, analysts said.
Used car prices in September were also at their highest level in more than 5 years, according to a J.P. Morgan October 25 research note.
The fourth quarter of the year is also typically the hardest for pickup truck sales, because of purchases by businesses, Krebs said.
"Everyone's trying to extend the life (of their vehicles), but you can just extend it so far," said Mirko Mikelic, senior portfolio manager with Fifth Third Asset Management. "People are almost forced to swap in for a new vehicle." reuters.com
Analysts said October's likely stronger sales comprised also driven by the greater availability of vehicles arrived at by Honda Motor Co (7267.T) and Toyota Motor Co (7203.T), after the industry recovered from Japan's March earthquake which triggered a shortage of auto parts.
"We think there was some pent-up ask held over from Honda and Toyota die-hards who waited to buy those and in October there was growing armory," Edmunds.com analyst Michelle Krebs said. Auto sales are an early indicator each month of U.S. consumer demand.
But Krebs added that Honda's rebound could be short-lived after severe flooding in Thailand activated a shortage of crucial electronic parts.
The flooding will not hit October sales, but it may affect Nov and Dec U.S. auto sales, particularly at Honda, analysts said.
Honda withdrew its 2011 financial outlook and cut North American output by half from November 2 to November 10. Honda also pushed back the sales date for its 2012 CR-V crossover, the company's entry in the hot-selling compact SUV market.
"It does seem more severe than we initially believed," Jesse Toprak, Truecar.com analyst, said of the impact of the floods. "Honda has a lot riding on the CR-V and it is a potential constraint in Honda sales for the next several months."
Last week, Ford Motor Co (F.N) said it expected its product to fall by 30,000 vehicles due to supply shortages linked to the floods.
Still, overall U.S. sales over the remainder of the year will benefit from both rising applied car prices and the increased need to replace aging vehicles, analysts said.
U.S. auto sales have been trending higher since June when the annualized sales rate dipped to eleven.6 million vehicles. Better offerings from the likes of General Motors Co (GM.N), Chrysler Group LLC (FIA.MI) and Ford are also boosting sales.
The average vehicle on U.S. roads is almost 11 years old, two years older today than the average in 2007, and at a few point those cars will break down and spur new car sales, analysts said.
Used car prices in September were also at their highest level in more than 5 years, according to a J.P. Morgan October 25 research note.
The fourth quarter of the year is also typically the hardest for pickup truck sales, because of purchases by businesses, Krebs said.
"Everyone's trying to extend the life (of their vehicles), but you can just extend it so far," said Mirko Mikelic, senior portfolio manager with Fifth Third Asset Management. "People are almost forced to swap in for a new vehicle." reuters.com
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