National Automobile Dealers Association chief economist Steven Szakaly pinpointed what he believes are the two key factors that will sustain the new-vehicle sales momentum in 2016.
During a recent NADA-TV interview, Szakaly explained the elements that should help new metal roll over the curb are low gasoline prices and rising incentives.
“This year, we’ll start to see sales struggle a bit, and we’ll see incentives come up. OEMs have a lot of capacity," Szakaly said.
“This is a great industry right now. You look at the shows: Los Angeles, Detroit, New York coming up and the NADA convention as well, and they’re all looking at banner years,” he continued.
Szakaly added that the auto industry has achieved an unprecedented recovery since the economic recession.
“Wages are up, and automobile dealerships are averaging growth of over 3 percent, well above the national average,” he said.
To watch the complete interview with Szakaly, click on the video at the top of this page.