Auto Sales May See Record Numbers for 2015
Automotive sales are on the rise in 2015, and if this trend keeps up, we could see record-breaking highs, according to recent reports.
The current annual record for auto sales rests at 17.4 million currently. A result of post-recession gains, forecasts for auto sales in 2015 could top that figure if this trend continues. According to the LA Times, sales reached 8.5 million by July 1st of this year.
A variety of factors can potentially play into this growth in sales, the article says. Some of these include impressively low interest rates, as well as affordable gas prices and aging vehicles that need to be replaced. The average age of vehicles on the road has now grown to 11 years, and AAA reports that the average price for gasoline for the country was $2.67 per gallon on August 17.
NADA’s July 2015 edition of Market Beat, which is produced by their Industry Analysis Department, reported that “Autos have beaten all expectations and continue to gain strength in an otherwise mixed economy … Expect this strong auto market to continue into 2016.”
For the moment, retailers have the upper hand. Increased demand means car dealers have more power when it comes to asking prices and negotiations. However, this trend is part of a cyclical cycle, and dealers should be preparing for a decrease in demand if the economy shifts.