As a new year begins, analysts in every industry start releasing their end-of-the-year reports and lists of predictions for what’s to come, and you’ve probably already noticed that the auto industry is no exception. Every media and news outlet is analyzing which vehicles were surprisingly successful, which manufacturers had the most car sales, and how all of last year’s specific numbers could possibly influence car sales and car dealership specials during the year to come.
But there’s another issue at the root of these analyses, which appeared in newspapers and blogs quite often during the end of 2014 and which is popping up again: the basic fact that 2014 was such a great year in terms of car sales, and that sales increased by a whopping 30% over the course of one year.
Countless experts in the auto industry have been proposing complex theories about why used cars and new cars were both flying off lots during 2014, but it appears that NBC may have hit the nail on the head with its simple answer: American consumers are just more confident in industry and in the economy overall.
According to NBC, consumer confidence levels are the highest they’ve been since 2004, and it’s expected that local car dealers will sell at least 17 million vehicles during 2015 — a sales number which hasn’t been seen since 2001. Furthermore, analysts have noted that the industry is entering its sixth year of increased sales.
So what exactly does this mean for consumers looking to buy a new or pre owned vehicle?
ure, the auto market has been called a “frenzy” due to such high sales, and experts warn that continuous increases in sales numbers, without any slowing or stabilization, could make the industry a bit weaker in the years to come. But here’s the thing: the economic collapse of 2008 isn’t so far in the past that consumers and dealers alike have forgotten what happens when people make big purchases that they can’t afford. And car dealers know that the industry, while successful right now, is in a fragile state.
To put it simply, anyone who can afford to buy a car is in a good position, because car manufacturers and dealers are being extra-careful with sales and financing agreements right now. Although organization and communication are essential to making sure that the industry remains stable, it’s perhaps a good time to celebrate the simple fact that the industry is doing so well because consumers are more confident in the economy. Get more info here.
