The auto industry in the United States has steadily seen growth since the famous government bailout that helped keep GM and Chrysler in business. And the good news is that there is still more growth anticipated for the sixth straight year. Unprecedented annual sales, combined with increases in jobs, more credit, and a decrease in fuel prices have all helped bring the U.S. automotive industry back from the brink.
Positive Projections for 2015
It is estimated that the number of light trucks and new cars that will be delivered throughout 2015 will probably be around 16.7 million. This is the average number that has been estimated by 12 analysts. This is also the highest number of vehicles estimated to be delivered in the last decade.
Even higher numbers have also been projected for 2015, with the National Automobile Dealers Association stating that they feel over 16.9 million vehicles could be sold. But no matter whose estimates you go by, experts speculate that 2015’s deliveries could potentially exceed 2014’s deliveries by roughly 400,000 units. That is positive growth that simply can’t be denied.
The Reason for the Growth in the Automotive Market
Why are consumers more comfortable making automotive purchases today than they have been in recent years? First off, there are more jobs available, and these opportunities give Americans the confidence they need to take out large loans for new vehicles. Combine this with the lowest gas prices in years and you have a lot of people who are no longer afraid of making this expensive investment.
On top of all of that, fewer Americans are worried about their financial situations, and they are not as concerned as they used to be about losing their jobs. This means that people are buying new cars because they simply want a new car, rather than purchasing vehicles out of a necessity because their old cars required products like plasti dip colors and other repairs, or because their vehicles broke down.
Could a Plateau Be in Sight?
Despite the continuous growth and the anticipated sales, however, some experts feel that a plateau could also be imminent. So even though 2015 will likely see more growth, it could also be the start of a plateau when it comes to automotive sales as well. This is because experts feel that it is difficult to realistically say that the same growth rates will continue for years to come.
Unless there are even more buying incentives and more young drivers getting out there and purchasing new cars, it is likely that new car sales will begin to stagnate. However, because gas prices may continue to remain low, drivers might be willing to invest in models like popular SUVs or trucks again.
Hopefully the auto industry in America will continue to improve and grow as more people purchase new vehicles and head out onto the road to show them off. But only time will tell, as experts can only make estimations and predictions about what is to come for such a large and dynamic industry.