But Will It Last? The Boom In Car Sales Tempered In 2017

Post date: Apr 26, 2017 9:12:58 AM

In recent years, car sales have breached the 17 million mark in the U.S. But the economic complexity of the automotive industry guarantees that this will diminish, and 2017 seems to be the year for that.

The automotive sales boom in the past seven years largely coincided with an improving job market and easy access to loans for purchasing vehicles. Naturally, economic slowdowns will give the automotive industry a direct hit, and dealers and brands felt a little squeeze as early as January this year.

Image source: CBC.ca

An administration change could introduce upheavals in the industry. President-elect Donald Trump’s higher tariffs on imported cars and parts will, of course, be blatantly felt by producers, while banks and other lending institutions are just now realizing the consequences of breezy loan approvals in the form of defaulting car loans.

The slower pace of sales growth might take some getting used to, as last year saw a buying frenzy, especially in segments such as crossovers, SUVs, and pickups. Falling global oil prices also helped automotive consumption, while energy trends are also expected to exhibit shifts towards the use of electricity and other fuel alternatives.

Image source: AutoTrainingCentre.com

Analysts and industry insiders, however, are waving off the slowdown as a natural consequence of a high. After all, six years of prosperity are long enough, and it’s not like the market underwent drastic changes so as to significantly cut production and scare off demand.

Jeff Lupient is proficient in many skills such as new business development, automotive dealership, and sales. His competencies would later lead to his becoming the president and CEO of Minnesota-based firm Lupient Automotive Group in 2012. For more reads on the automotive industry, visit this page.