New car sales continue to benefit from positive economic trends, says a new report from Edmunds.com. While sales are not growing as rapidly as they did in 2013 and 2014, sales remain very healthy.
The U.S. light vehicle market in May had one of its best-selling months since the Great Recession. May is generally a strong month, with consumers flush with cash from tax returns, and upcoming summer vacation trips spurring strong demand, and this May was no exception, said Charles Chesbrough, the chief economist for IHS Automotive. The IHS Automotive sales forecast remains unchanged at 16.9 million units, while others are predicting sales in excess of 17 million units.
Sales are not only on the rise compared with last year, but also buyers are looking for pricier vehicles. Car shoppers’ revived interest in more expensive vehicles, which is led in some measure by the ongoing interest trucks and SUVs, is unlikely to end any time soon, according to the firm’s latest U.S. market analysis. Positive economic trends such as lower unemployment, higher confidence in the economy, and lower gas prices are encouraging shoppers to seek out bigger and more expensive vehicles, the analysis found. (more…)