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December sales numbers show 2015 a great year for auto industry

December sales numbers show 2015 a great year for auto industry

North American car sales are expected to be better than anyone had hoped for 2015 according to a couple of analysts. Both Edmunds and the pairing of LMC Automotive and J.D. Power say that this year was a good year for car sales. From our experience here in Canada, we have to agree.

While Canadian-specific numbers are yet to arrive, U.S. sales are already off to a good start. Projections show a total sales volume around 18,100,200 in the States alone, making it the single biggest year since 2000. Sales for 2014 tallied at 16,531,070, so if the projections are accurate we have seen an 11% improvement across the year.

Edmunds on the case
Edmunds is more conservative, citing U.S. sales of around 17.5 million units across the year. That’s still up from that high of 2000, which topped out at 17.4 million according to Edmunds. If December goes according to their predictions, the month will see an improvement of over 28% over November too.

"It's truly remarkable that the auto industry is finishing off its best year ever just six years after the depths of the Great Recession," said Edmunds.com Director of Industry Analysis Jessica Caldwell.

"Low-APR offers and tumbling gas prices are making it easy for shoppers to buy or lease a new car, but don't overlook the products themselves. If you're buying a new car today, you're getting a safer, more fuel-efficient and more technologically packed vehicle than ever before. Automakers are doing a great job giving the people what they want in a new car." (Source)

J.D. Power interest rises
There was slight concern that interest rate rises in the States might affect their sales but it doesn’t seem to have impacted them at all. While we won’t know the true sales numbers until the end of the month, from what we have seen and heard so far, the interest hike hasn’t impacted new car sales as much as some had feared.

"The increase should have a minimal impact on new-vehicle sales. There is the risk of a knee-jerk reaction from consumers to big economic news, leading them to delay buying, but the survey suggests it's a very small proportion of shoppers who are concerned about rates, particularly at this low level," John Humphrey, senior vice president of J.D. Power's global automotive practice said. (Source)

As mentioned, we don’t have the Canadian sales figures just yet but we expect similar rises in sales and a smaller impact of the interest rate hike the States experienced. What we do know is that any rise in the sale of big ticket items such as new cars shows an increased confidence in the wider economy, jobs and finance. That’s good news for everybody!

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