Auto sales in the new car industry have been at their highest in over six years, which is great news as this may show signs of the recession being a thing of the past. With new car sales increasing to 17% and 1.5 million sales in August, signs are very promising, which make us ask “What’s next for the aftermarket parts and 4×4 accessories market?”
With the recent trends in the auto business showing such good signs, chances are 4×4 enthusiasts will start investing in more into their offroad vehicles and spend more time participating in related activities. We hope that results of these actions will help make the offroad community grow and become more popular.
According to an interview conducted by the Washington Post with General Motor’s chief economist Mustafa Mohatarem, the recent automotive purchasing trends are here to stay. In 2007 auto sales reached a high of 16 million units sold and dropped to its lowest in 2009 at 10.4 million. With sales projecting to be 15.8 million by the end of this year, automakers are looking at a bright future.
So why are auto sales increasing so dramatically this year? One event that helped was over the labor-day weekend; many automakers released a huge flurry advertising campaigns and promotions. But looking at the big picture, many believe the economy has begun to improve, creating more jobs and a higher demand for people to buy cars to commute with. In addition, the average age of cars on the road is 11.4 years and with low interest rates attracting buyers there is more of an incentive to replace them with new vehicles.
Auto analyst Christian Mayes with Edward Jones in St. Louis, says consumers are figuring out that they can get a lot of car for the money because of low interest rates. Newer vehicles are far more fuel-efficient than the ones they’re replacing, so buyers can apply the savings on gasoline to the monthly payment to get more options he claims. Mayes doesn’t see the strong sales ending anytime soon, and for our sake lets hope he’s right!