January 19, 2020

The Current State Of New Car Sales And The Potential Future Of The Industry

It's fair to say new car sales in the U.S. have stagnated over recent years. The amount of cars being sold doesn't look like it's anything we should worry about too much, but at the same time manufacturers surely must be predicting a bleak future until something special happens. The economy is a lot stronger than when it crashed almost a decade ago, so why aren't new car sales reflecting the increase in the amount of disposable income lots of us are enjoying at this moment in time? Perhaps people feel safer keeping money in their bank accounts in case the inevitable happens again.

New Car Sales Dropping By Around One Percent

You also have to take into account the incentives being offered to customers. If you were looking to buy a new car, you would be more likely to pull the trigger if companies were offering you a lot of extras to push you over the edge. This doesn't seem to be working because not only have sales dropped when the amount of incentives offered have reached a new high, but they also amount to nearly $200 more than last year. If you're thinking about buying a new car at this moment in time, you could hope to receive incentives totaling an average of $3,923. Let's touch on how discounts can be totally detrimental to a company.

How Discounts Are Masking Serious Problems

Don't assume a car is great because it's one of the most popular available at any given time. If we look at the When you strip incentives out of the equation, it seems like ” target=”_blank”>Asian market where they've seen sales jump by as much as 13 percent over the previous year. Even in Europe, the numbers are slowly rising to the levels they were sitting at before the disaster of 2008. The only reason they're doing worse than they should be is due to the Volkswagen diesel emission scandal.

A New Way To Do Business When Buying Cars

We can't ignore the upsurge in companies like ” target=”_blank”> Right now, it seems like new car sales numbers might eventually begin to drop, but we're forgetting something very important. We're at a point in history where we're going to see the biggest changes since the invention of the car production line. Electric and self-driving cars aren't too far away from becoming the norm, so it would be silly to say new car sales figures will drop or remain stagnant. The truth is, we don't know what we're going to be dealing with a decade from now.

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