After 2016 boom in car sales, 2017 may be more of the same

2016 ended up as a great year for car sales, largely due to a steep uptick in business in December, a blog posted on Elephant Auto Insurance's website said.

According to Kelley Blue Book, 17.4 million new vehicles were purchased during the final month of 2016, the post said.

Will there be a repeat in 2017? History would suggest that perhaps sales would level out at a lower level following such a large surge in sales. But this year could also defy that rule, according to a recent report, the posting said. J.D. Power and Associates has said that new vehicle sales are likely to reach about 875,000 cars bought, which is a 2 percent dip. However, with President Donald Trump’s promise to regulate various government departments, consumers are also likely to see sales intensify.

"After an overheated close to 2016 and the increased likelihood of deregulation and fiscal stimulus from the Trump administration driving the economy higher, we now expect 2017 to be another record year in U.S. auto sales," Jeff Schuster, senior vice president of forecasting at LMC Automotive, said in the posting. "(However), there is a lot of runway before the year is complete. While there are many variables to consider this year, one area of caution is the large number of lease maturities repopulating the used-car market.”

Because of the low interest rates, dealerships have also been leasing a lot more vehicles.

"Leasing has long been the gateway for car shoppers who are looking to get a nicer vehicle than they could if they financed," Jessica Caldwell, executive director of industry analysis at Edmunds, said in the posting. "Because SUVs and trucks are holding their values so well right now, it makes them much more accessible for a much wider swath of the market, further fueling their popularity."
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Elephant Auto Insurance Glen Allen, VA 23059, United States Glen Allen, VA 23059