Car Audio expeditors who sell to car dealers have been riding the tsunami of record high car sales. So you may want to note that car sales are starting to slow.
June car sales are showing a 2 percent decline estimates Ward Auto, according to The Detroit Bureau.
Car sales for the full 2017 are now expected to drop by 3 percent to about 17.1 million units, says Cox Automotive which owns Kelley Blue Book, said CNN Money. This would mark the first decline after 6 straight years of increases, with sales last year hitting 17.6 million units.
The slow down has forced Ford to cut production and GM is already idling about 5,000 workers .
Until recently, car sales were rebounding from the Great Recession which sent 2009 sales crashing down to 10.4 million units, leading General Motors and Chrysler Group to declare bankruptcy.
Currently consumers are holding on to cars an average of about
11.6 years.
The trend may bode well for the aftermarket overall as drivers of older cars may seek out an aftermarket backup camera or CarPlay radio. Although this may vary by retailer as some tend to see more new car buyers who head over to a 12 volt shop to get the backup camera or CarPlay radio they didn’t get with the new vehicle.
Analysts appear to expect a gradual rather than a steep decline in car sales. CNN Money quoted Charlie Chesbrough of Cox Automotive as saying car sales are are now off their peak but, “The U.S. economy remains strong — confidence is high, unemployment is low — and this will continue to support vehicle demand over the near-term.”
Last month the steepest decline was in sedans, with sales falling as much as 12 percent at Toyota. But there was still strong demand for many SUVs and crossovers, as gas prices remain cheap.
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The confusion here is that car SALES have not been on the rise… Car LEASING is! Leasing has made having a NEW car affordable – and before you ever need to talk about Tune Ups or Timing Belts – you just bring the car back & they hand you the keys to another shiny new car. Just budget yourself for a “X” payment for the rest of your life and always drive a new car.