Auto Sales Are Rebounding

It looks like things are getting better for the auto industry. According to the Wall Street Journal, sales increased for Ford, General Motors, and Toyota during the month of March. GM's quarterly sales were up 43%, Toyota's 41% and Honda's 40% over the previous year. The good news was not only limited to those three manufacturers. Honda and Hyundai both experienced double digit sales growth. The entire auto industry saw a 25% rise in auto sales. The positive sales numbers are largely attributable to dealer incentives and rising consumer demand. The nation's largest used car retailer, Carmax (KMX) doubled its 4th quarter profit from the previous year. Revenue came in at $1.83 billion which is higher than the $1.76 billion dollar figure expected. Carmax earned 33 cents per share which beat street estimates of 25 cents. Carmax's results were so good that the company is resuming its expansion plans and opening three more stores. BGB Securities analyst Sam Yake believes that this "is very positive news for investors, because it is a good sign that the company is in good health and that it is going to resume growth."