McLEAN, Va. — The sales momentum of new cars and light trucks established last year is likely to continue in 2013, predicted Paul Taylor, chief economist of the National Automobile Dealers Association.
Taylor expects more than 15.4 million new vehicles will be purchased or leased in the United States this year, an increase of 1 million vehicles over 2012. Last year, 14.4 million new vehicles were sold.
“Pent-up demand, affordable auto loans and enticing new-vehicle designs add up to a solid sales year that will outperform the overall U.S. economy,” Taylor said.
Taylor also highlighted several factors that will support his 2013 predictions:
Pent-Up Demand: The continued replacement of cars and trucks that aged to a record level during the recession will propel sales this year.
Available Credit: Low interest rates for auto loans, which are expected to increase in future years, will help motivate consumers to finance a new-vehicle purchase in 2013.
More New-Vehicle Choices: New-vehicle models with greater consumer appeal in design and fuel efficiency are headed to dealerships. About 50 new models will be introduced at the North American International Auto Show in Detroit.
Declining Unemployment: The falling rate of unemployment has led to improving consumer confidence.
Used-Vehicle Shortage: The continued short supply of used vehicles for sale resulting from the past recession will cause some consumers to purchase new vehicles this year, instead of used ones.
Fiscal Cliff Avoided: So far, modest action by Congress to avoid the fiscal cliff, which avoids some tax hikes, will result in more new-vehicle sales early in the year.
Improving Home Values: Residential real estate prices are showing a recovery in nearly all states in the nation, increasing the typical family nest egg. As a result, consumers are more confident about spending on big-ticket items.
“Momentum” is the theme of the upcoming NADA Convention and Expo in Orlando, Fla., Feb. 8-11. Taylor will discuss the performance of the new-vehicle market, new-car dealers and the U.S. economy at a convention press conference on Feb. 9.
NADA Economist: New-Vehicle Sales to Maintain Momentum in 2013
The NADA’s chief economist predicts that auto dealers will retail one million more vehicles than they did in 2012, and offers seven reasons for his positive outlook.
More F&I

F&I Reaches for the Sky
The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
The 90/10 Rule
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →
Your Office Is Talking
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
Read More →
F&I Training Fundamentals
How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.
Read More →
Not Just Any Tire Will Do
More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.
Read More →
How AI Will Drive the Next Wave of Innovation in Finance & Insurance
It’s time to take the next digital step to free F&I managers to handle the most challenging aspects of customer meetings.
Read More →
Control in Sales Is an Illusion
Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.
Read More →

Curb The Confusion
Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.
Read More →