Continued economic improvement, low interest rates and cheap gasoline will help new-vehicle sales rise more than 3% to nearly 17 million units next year, the most since 2005, according to forecasts from the National Automobile Dealers Association (NADA).
Automotive News reported that NADA sees U.S. new vehicle sales growing to 16.94 million units in 2015 from a projected 16.4 million this year, as U.S. gross domestic product grows 3.1%, compared with an estimated 2.1% this year.
Through October, the industry sold 13.7 million vehicles in the U.S., up 6% over the same period of 2013.
But sales will begin to plateau or even decline after 2015 as the growing number car buyers with five- to seven-year financing deals delay their next purchase to pay down those long-term loans, NADA’s chief economist says.
The monthly U.S. adjusted sales rate has topped 16 million vehicles for eight months in a row, and in August surpassed the 17.5 million mark, according to the Automotive News Data Center. The October rate was 16.5 million.
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