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Forecast: U.S. Car Sales to Peak at 18.2 Million in 2017
IHS Automotive predicts light-vehicle sales in the U.S. will climb to a record 18.2 million units over the next two years, then ebb slowly as prices and interest rates rise.
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IHS Automotive predicts light-vehicle sales in the U.S. will climb to a record 18.2 million units over the next two years, then ebb slowly as prices and interest rates rise.
IHS forecasts sales will grow 5% to 17.3 million vehicles this year, 3% to 17.8 million in 2016 and 2% to the 18.2 million peak in 2017. The firm then expects volumes to slip to 18 million in 2018, 17.7 million in 2019 and 17.3 million in 2020.
Today's sales are being buoyed by cheap fuel, a growing jobs market and a flood of new products, according to IHS. The firm adds that the average term for a car loan, currently at nearly 65 months, is likely to continue to lengthen.
IHS says an inevitable hike in the prime lending rate eventually will add a few thousand dollars to the cost of financing a new car or truck, thus damping demand.
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