The latest figures show that car manufacturers reached another record-breaking sales level for a seventh consecutive year in 2016, climbing at a seasonally adjusted rate of 18.4 million. Experts suggest that the numbers are set to drop in 2017, however, resulting in many dealers offering enhanced incentives for buyers. This could mean that cheaper auto loans and promotional offers will be easier to come by for many people.
Kelley Blue Brook analyst Karl Brauer said, "This (streak) has been pretty much unprecedented, at least in the modern era of new-vehicle sales growth." Despite this, most experts agree that the run has almost finished. Having enjoyed such a long period of growth, it is likely that the industry will see some contraction. This prediction is further fuelled by manufacturers having almost met the demand for new vehicles after the financial crisis, during which many consumers deferred making large purchases.
The signs of this change are already evident, with cars spending more time on a lot before being sold, compared with the same period a year ago. In the fourth quarter of 2015, vehicles spent an average of 63 days on a lot, and this has now risen to 71 days. On the back of such news, many dealers are offering buyers more incentives, such as discounted prices and more lenient financing options.
For borrowers wanting to take out a new auto loan, 2017 could be the year to do so, with dealerships producing attractive deals to increase their sales. It remains important, though, to stick to your budget. Otherwise, you could find yourself with a loan that outlives the car itself.
If you are interested in taking out an auto loan, visit our curated list of top lenders.
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