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The U.S. auto sales are expected to fall down for the next 5 years!

29 Jun 2016
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The U.S. auto sales are expected to fall down for the next 5 years!

The U.S. auto sales have been told to slow down this year after 7 years of great results, but even so the car manufacturers and dealers have high expectations, and best hopes for 2016. The sales may have reached its peak but that doesn't mean they slowed down, they say, and they brought up good arguments on that considering Americans buy lots of vehicles nowadays.

 

 

A newly released report has not that great forecasts on U.S. light vehicle sales for 2017. The specialists say that sales will go down to 17.5 million in 2017, down slightly from this year's 17.8 million forecast. The consulting firm is expecting car sales to bottom at 15.2 million vehicles in 2018, and only after that in 2022 the sales may upturn to 16.8 million. This downturn will totallycap the industry's winning streak at seven consecutive years of growth. You may ask yourself now, what would be the cause of such a thing? The reason is simple but real, first of all let's remember about the soft used-car prices, the slow-growth economy and modestly higher interest rates. All of these will make a serious change in new car sales industry.

 

 

Of course the main reason stays the low prices on used cars, I mean why would you buy a new model when a new, reliable one costs so much less. Leases on new car transactions rose rose up to 31% from 27%. More than 40 non-luxury cars that are traded in will have negative equity this year. The sales slowdown will put automakers in a new dillemma, they'll have to think on what to do with the manufacturing capacity they have been constructing in Mexico since the last downturn in sales.

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