The auto industry is definitely one of the most important industries in the U.S. today — and no one can deny that it took a really big hit back in 2007-2008 when the economy tanked. Thankfully, it seems like car sales are getting back on track, and this growth in car sales and strengthening industry is actually a few years in the making.
Multiple car manufacturers, both domestic and foreign, saw better car sales in the past few years, and 2014 is rumored to have had the highest sales since 2006. But that’s not the only interesting statistic behind car sales today:
- According to TIME magazine, new car sales rose about 40% between August 2012 and August 2013 — that’s a huge increase in sales! But a lot of these sales weren’t really permanent per say; TIME also reports that about 25% of those sales were leases, each lasting about two to three years….
- …Which probably accounts for the dramatic drop in used car prices that began during 2014. Normally, buying a used car is about 35% to 40% cheaper than buying a new car, but due to the influx of used cars on dealers’ lots, many American consumers found that fairly new used cars were actually even cheaper than expected…
- …And that might explain why Edmunds notes that new car sales have only accounted for about 29% of all sales in recent years. Even though lots of people like that new cars can be customized with tons of features and can usually be financed easier than used cars, it makes sense that lower used car prices would cause more people to choose used.
It’s impossible to know for sure just what the future holds for the U.S. auto industry, but if these statistics are any indication, it’s very possible that its worst days are behind us. To see more, read this.