New Vehicle Sales Projected to Stay Strong in 2017
According to Automotive News, the market for new vehicle sales is expected to continue to be strong throughout 2017. With millions of consumers buying new cars over the course of the year, there is a substantial likelihood that at least some of those vehicle purchasers will end up with a car that has repeated problems. If you are one of the unlucky consumers whose new car suffers from continual issues, you should find out how the California lemon law protects you.
Strong New Vehicle Sales Likely to Continue
The National Automobile Dealers Association (NADA) issues an annual auto market forecast for the upcoming year. The Association indicated that it expects sales of new vehicles to remain above 17 million during 2017. This is an indicator of a strong market. The used car market is also expected to be strong in 2017, with an estimated 15.3 million light used vehicle sales projected for the upcoming year.
If the projections are accurate and more than 17 million new vehicles are sold next year, this will be the third straight year that more than 17 new million cars are purchased. In 2015, a recent record was set with 17.47 million light vehicles sold to consumers over the course of the year. The total number of new car sales dropped slightly in 2016 and the NADA believes that the total volume of vehicles sold this year is likely to be 17.4 million when all of the data is in.
There is expected to be another slight decline in 2017 as NADA estimates a total of 17.1 million light vehicles will be sold. This is still a good number of vehicles, suggesting a stable and strong market will continue into the next year. Factors that are expected to result in a good market for car sales include solid overall economic growth in the United States, low gas prices below $2 per gallon, and a stabilization in politics once the new president takes office.
The U.S. economy is expected to usher in growth, with a 2.6 percent anticipated rise the GDP and with anywhere from 150,000 to 180,000 new jobs expected to be added over the course of each month. All of this should help to encourage many new car purchases.
If the President follows through on promises to reduce regulations, the market could actually do better than projected, according to NADA. There could be a sales surge in the second half of the year, driving sales to as high as 17.3 or 17.4 million depending upon what type of regulatory shifts occur. If fuel economy standards are relaxed, this could have a major impact on future sales by lowering vehicle prices going forward.
With millions of people buying cars, consumers must make certain they know their rights in case they end up with a vehicle that has a problem. California’s lemon law can protect some purchasers of new vehicles, so those who buy cars that have repeated issues should talk with an attorney at The Bickel Law Firm about whether they have legal recourse.