New car sales dipped in April after a red-hot start to the year, but the National Automobile Dealers Association (NADA) says there's still reason for optimism over the course of 2012.
While April sales were lower than expected, NADA chief economist Paul Taylor says that several factors will likely lead to a 10 percent rise in new car sales for the rest of the year. Lower prices at the pump combined with increased production of compact vehicles are giving auto dealers across the nation reason to hope for a strong 2012.
"As inventory levels of small and midsized cars with four-cylinder engines return to normal after the production bottlenecks in the U.S. and Asia, new-car sales will likely increase in future months," Taylor said. "Light-truck sales will see a comeback during the second quarter. Falling gasoline prices - assuming there are no oil disruptions in the Middle East - will increase demand for both new and used sport-utility vehicles, crossover-utility vehicles, minivans and pickup trucks."
Drivers considering purchasing a new vehicle should make sure that their trade-in car is in tip-top shape. Taking care of a nagging auto repair and investing in vehicle maintenance can help drivers raise the value of their trade.