Analysts Predict Big Growth for U.S. Car Sales in 2012
Better credit, rising employment, increased production and an aging American fleet will contribute.
According to Automotive News, the predictions of 11 independent analysts from agencies such as Morgan Stanley and Wells Fargo Securities yielded an average outlook of 13.6 million units. That would mark a 6 to 7 percent increase from the projected 2011 numbers, which are figured to top 12.7 million units.
One stated reason for the projected boost is an American car-buying public that now remains steadier during times of troubling financial news, unlike the plummet seen when the financial crisis hit in 2008. One analyst cited the summertime congressional standoff over the debt ceiling, noting that "the Dow fell 1,500 points -- and car sales stayed smooth and consistent." Analysts also downplay the idea that the European debt crisis will significantly alter American buying habits.
Another factor is an expected buyers market next year, with Asian and European manufacturers looking to unload excess product in the U.S. -- likely along with healthy incentives. Other indicators are a projected bump in North American auto production, higher leasing rates and better credit availability. The aging American vehicle fleet -- the average age of vehicles on the road is 10.7 years, as opposed to 8 or 9 years seen for much of the past decade -- is also major factor. One analyst quoted by Automotive News summed it up like this: "Americans have gone without for a very long time. 'I need a car' is the biggest reason for optimism."
Meanwhile, back at reality ranch.................Americans have gone without a very long time because we don't have the money for a big ticket purchase like a new vehicle.
That's a reality
Nice little piece of journalistic optimism.
Oh, and the "rising" employment numbers. That'll change after the holidays.
I bought my car 2002 and it still get's great mileage. I'm keeping it until it falls apart. However I take great care of it. I will not be buying a new car in the near future.
We need to vote out the present Congress and get some people who know and feel the money crunch as regular people do. Remove the deadbeats who will keep on selling our country to other countries.
WE NEED JOBS SO WE CAN BUY NEW CARS!
This is good news for our American companies. However, there is always a dark cloud. As the writer said, "Asian and European manufacturers are looking to unload excess product in the U.S." . In other words, flood our market with more foreign cars that good 'ol Americans can drive to their job at taco bell.
I don't see this happening anytime soon, UNLESS our Supreme(ly awful) Court bans the private financing of political campaigns.
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