Car Sales Are Down.
The past 7 years have included record breaking sales for the auto industry, but that isn’t the case now. For the first half of 2017, all of the big name carmakers have struggled to move vehicles off the lot. Sales for General Motors, Ford, and Fiat Chrysler have all declined.
Why Is This Happening?
The auto industry has been at an all time high over the past few years. Since the Great Recession of 2008-2009, there have been more jobs, rising wages, and low interest rates, increasing the discretionary income for individuals and making it easier to purchase and afford newer cars. But now, industry experts say that they have reached the peak, and there is nowhere to go but down.
Other experts attribute the decline in sales to the way newer cars are built. “Vehicles made in the past 15 to 20 years are vastly more reliable than their predecessors,” suggests Bloomberg’s Kyle Stock. “The U.S. auto industry is in a pickle, in part, because it did too good of a job.”
On the other hand, some blame it on the rising car prices. Others say that because the industry did so well, there aren’t any interested buyers right now.
Whatever the case may be, it means good news for car buyers.
What Does This Mean For Me?
It means discounts, price drops, and good deals. “Companies like Ford and GM have many levers to pull to avoid a disaster – namely, a mix of lowering production and raising incentives to lure drivers back to the dealership,” says Stock.
Buyers are seeing prices for both new and used vehicles start to drop. New vehicles as much as 10% and used vehicles as much as 50%.
“A combination of historically low gas prices and improvements in fuel efficiency mean consumers can upgrade from cars to SUVs without forking over a huge chunk of their paycheck to gas stations each month,” says Annalyn Kurtz with Fortune.
This, in conjunction with the deep discounts from car manufacturers, can only mean one thing: It’s a good time to be a car buyer.