Senior Principal Economist
IHS Automotive will hit a peak of 18.2M new light-duty vehicles sold in 2017 before leveling off and declining to 16.97 in 2022. The previous peak was 17.4M in 2000, with 17.76M expected for next year and 17.31M in 2015. Low gasoline prices, consumer confidence, a strong housing market, and attractive auto loan financing are contributing to better-than-expected sales. Rising interest rates and higher vehicle prices are expected to soften new vehicle sales beyond 2017.
Availability of Credit for Low-Interest Loans Has Been Major Sales Driver:
Average loan length continuing to lengthen – now at 64.6 months, nearly 5.5 years.
New Vehicle Sales Also Being Spurred by Wave of New Car and Truck Models:
Should be 76 new models introduced next year and 74 in 2017, up from 49 in 2015.
Average Age of Vehicles in Operation Will Increase 3% by 2020 from Current Level of 11.5 Years:
Registered vehicles have increased 2.1% — by 5.3M for a total of 257.9M U.S. vehicles.