While sales of new cars are expected to increase by about 6 percent in 2013, which will end a three-year trend of double-digit growth. Kelley Blue Book reports that the auto industry has been helped in recent years by low interest rates and pent-up demand, which has driven sales up by significant amounts.
"Although the sales pace is expected to slow this year, automakers have demonstrated that they can generate solid profits with sales at current levels," said Alec Gutierrez, an analyst for Kelley Blue Book. "... While economic growth is expected to arrive slowly in 2013, there are several indications that point toward solid auto industry sales growth in the years ahead."
The improving economy has lead to more people purchasing new cars, but the dependability of these automobiles, upgraded vehicle maintenance and less necessary auto repair keeps them on the roads and in good condition for a longer period of time. This could be good news for drivers who are ready to take the plunge with a new vehicle, as automakers may strive to make their offerings more attractive to buyers.