In the first 10 months of 2014, 13,7 million new vehicles were sold in the US, an increase of 6 percent compared to the same period of 2013. The National Automobile Dealers Association (NADA) projects a total of 16.4 million for 2014.
It also forecasts things to get even better next year, with total new vehicle sales nudging the 17-million mark. If the 16.9 million sales projection comes true, it will be the best result ever since 2005.
“Rising employment and wages, continued low interest rates and lower gasoline prices all signal an increase in new light-vehicle sales in 2015”, said NADA’s chief economy Steven Szakaly. “The economy will continue to build on the solid growth established in 2014 and we also expect the fundamental conditions to improve in the year ahead.”
There are a lot of variables that may influence the outcome though. Szakaly notes that to top 17 million sales, automakers will have to sell more cars to younger buyers and up their incentives. Even so, the market will probably reach its peak next year, after which it is bound to drop to lower numbers.
“Sales obviously are not going to be as high in ’16, ’17 and ’18 and in those outer years because individuals are not going to be coming back into the market”, he said during a press conference according to Autonews. “They’re going to be continuing to pay off those leases and these loans, so we’re not going to see them come in as often.”
Fuel prices are hitting a four-year low of US$2.89 per gallon and they are expected to remain at the same level next year. Szakaly commented that this will add 200,000 to 250,000 sales in 2015, with light trucks claiming around 54 to 55 percent of the market.
Photo Gallery
