Car Dealer Group Predicts 16.9 Million U.S. Car Sales in 2015

Retail sales of new passenger vehicles in the U.S. will reach 16.9 million units next year compared with 16.4 million in 2014, predicts the National Automobile Dealers Assn.

NADA Chief Economist Steven Szakaly says low interest rates, improving employment and low fuel prices all point to sales growth. The group expects America's gross domestic product to expand at least 3.1% next year.

Szakaly says next year's volume won't surpass 17 million units unless the industry increases sales incentives and if young buyers accelerate their new-car purchases, something Millennials haven't done for the past two years.

NADA expects continuing low gasoline prices through 2015. The association predicts prices for West Texas Intermediate crude will average $72 per barrel in the first half of 2015 and $83 in the second half. Those prices compare with about $75 currently and about $104 in June 2014.