
US auto sales hit a record 17.55M in 2016, led by SUVs
DETROIT — U.S. consumers bought a record number of new cars and trucks in 2016. A repeat performance in 2017 could be a tall order.
Low gas prices, rising employment and low interest rates kept buyers coming to car dealerships last year. There was also the lure of new technology — such as backup cameras, automatic emergency braking and Apple CarPlay — and new vehicles like the Chrysler Pacifica minivan, the Honda Civic and the all-electric Chevrolet Bolt.
U.S. vehicle sales totalled 17.55 million, beating the previous year’s record of 17.47 million, according to Autodata Corp. It was the seventh consecutive year of year-over-year sales gains, an unprecedented string, said Tom Libby, an analyst with the consulting firm IHS Markit.
That string could be in jeopardy, however. The National Automobile Dealers Association expects U.S. sales to drop to 17.1 million vehicles in 2017 as interest rates and vehicle prices rise. Large numbers of cars coming off leases will hit the used-car market next year, putting pressure on new car sales. And more buyers are opting for longer loans, so they won’t be returning to dealerships anytime soon.