CARS SALES SAME EVEN WITH HIGHER TAXES

f Higher Taxes For the month of February, Kelley Blue Book analysts predict new-car sales will maintain the momentum from the previous three months and hit 15.3 million seasonally adjusted annual rate (SAAR), a 3.4 percent year-over-year improvement. Although shy of the 14 percent annual gain the auto industry experienced in January, sales should improve more than 7 percent after adjusting for the number of selling days in February. Although sales are expected to maintain a steady course in February, a recent Quick Poll among in-market car shoppers conducted by Kelley Blue Book 's Market Intelligence team indicates that many consumers are beginning to feel the pinch from the expiration of the 2 percent payroll tax holiday. When asked if the increase in the payroll tax impacted their new-vehicle purchase timeline, 39 percent indicated that they planned to delay their purchase, 28 percent responded that the tax increase didn't impact their purchase timeline in any way, while 27 percent indicated that they would reduce the amount they planned to spend on their next purchase.