FI showroom red and grey logo
MenuMENU
SearchSEARCH

NADA Sticks to 17.1 Million-Unit Forecast

The National Automobile Dealers Association (NADA)’s chairman and chief economist cited strong demand and rising wages among high-income earners as reasons to be optimistic about new-car sales.

by Staff
April 6, 2017
NADA Sticks to 17.1 Million-Unit Forecast

NADA’s leadership is bullish on the new-car market despite economic concerns that could compel some buyers to opt for pre-owned units. Photo by htmvalerio

2 min to read


TYSONS, Va. — In a Wednesday-morning conference call with members of the automotive press, the National Automobile Dealers Association (NADA)’s chairman, Chicago-area dealer Mark Scarpelli, and its chief economist, Steven Szakaly, predicted new-vehicle sales would remain above the 17 million-unit mark in 2017.

Throughout the quarterly briefing, Scarpelli and Szakaly cited a number of factors working in the industry’s favor, including continued strong demand for new vehicles — particularly in the SUV and pickup segments — and new technology.

Ad Loading...

“One area that does not get enough attention is demand for technology and safety,” said Scarpelli, president of Raymond Chevrolet and Raymond Kia in Antioch, Ill., and co-owner of Ray Chevrolet and Ray Chrysler-Jeep-Dodge-Ram in Fox Lake, Ill., noting that his customers are seeking vehicles equipped with the “latest and greatest safety features,” including collision avoidance technology, which is developing “very rapidly.”

On the economic front, Szakaly listed a number of factors, both positive and negative, that are affecting dealership profitability. He expressed hope that Federal Reserve-ordered interest hikes and modest wage growth would be offset by increased customer incentives and the buying power of high-wage earners.

“While these headwinds will not have much of an impact on new-vehicle sales, they are a sign of a flat market as we look at the rest of 2017 and next year,” Szakaly said, adding that a glut of off-lease units and stretching loan terms, in combination with rising interest rates, could push some new-car buyers toward the used-car lot.

Both men praised dealers for finding new sources of revenue and lead generation. Szakaly said the NADA has tracked “tremendous growth” in service performed by franchised dealership, noting that, since 2010, the number of express service repair orders has doubled, repair orders for warranty work (including recalls) are up by six million, and customer-pay ROs are up by seven million.

Asked whether any decrease from the record 17.5 million new units sold last year would represent a cyclical retrenchment or a prosperous plateau, Szakaly said that, despite the aforementioned economic headwinds, the latter is far more likely.

Ad Loading...

“I don’t see sales collapsing anytime in the next few years,” he said.

Topics:Showroom

More Showroom

desert road with cars driving away, Rebates Incoming with red star graphic, F&I and Showroom logo
Showroomby Lauren LawrenceJuly 15, 2026

California Launches EV Rebate Program

Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.

Read More →
Aerial shot of a car dealership
Showroomby Hannah MitchellJuly 13, 2026

OEM Poll Sees Industry Evolution

Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.

Read More →
Photo of cars lined up on lot
ShowroomJuly 10, 2026

The Trade-In Paradox

Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.

Read More →
Ad Loading...
Phot of a dark Kia vehicle interior with steering part of steering wheel and dashboard
Showroomby Hannah MitchellJune 29, 2026

Focus on Vehicle Cabins

The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.

Read More →
Photo of multiple new SUVs on a car dealership lot
Showroomby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Map of Europe next to back of EV car.
Showroomby Lauren LawrenceJune 22, 2026

European EV Market Hits Record

Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.

Read More →
Ad Loading...
Person pumping gas into car.
Showroomby Lauren LawrenceJune 17, 2026

Used EVs Outpace New

While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.

Read More →
Dodge emblem on orange vehicle
Showroomby Hannah MitchellJune 15, 2026

New Vehicles Down for Most Brands

Healthy May sales cut into inventory as automakers kept a tight reign on supply, though some brands ended the month with excess units on the ground.

Read More →
Photo of the back of an electric Mercedes
Showroomby Hannah MitchellJune 10, 2026

Auto Prices Ride May Moderation

Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Read More →
Ad Loading...
Orange Mitsubishi car on grass
Showroomby Lauren LawrenceJune 8, 2026

Mitsubishi Sets Growth Strategy, Structural Transformation

The Japanese automaker aims to 'strengthen products and technologies that embody its brand identity,' focus on its strongest markets and expand value-chain businesses 'that leverage its unique strengths.'

Read More →