agent Entrepreneur logo
MenuMENU
SearchSEARCH

New-Car Sales to Reach 13.9 Million, NADA’s Taylor Predicts

February 7, 2012
3 min to read


LAS VEGAS — Paul Taylor, chief economist of the National Automobile Dealers Association, said 2012 will be another rebuilding year for the industry, and predicts sales will reach 13.945 million units this year.


Fulfillment of that forecast mark the third consecutive year of rising new-vehicle sales. In 2009, the auto industry sold 10.4 million new cars and trucks, down from 13.2 million units in 2008. In 2010, sales grew to 11.55 million and rose to 12.7 million last year, according to F&I and Showroom magazine. Taylor, however, said the industry is still a ways away from the 16-17 million-unit years realized between 2000 and 2007.

Ad Loading...


“Those figures were not obtained during normal sales conditions,” Taylor said during his annual press briefing at the NADA Convention and Expo in Las Vegas. “Recent sales are what we would expect from a normal growing economy coming back from recession.”


Taylor listed better credit conditions and more generous manufacturer incentives as reasons for his positive outlook for 2012. He also said the production problems caused by the Japanese earthquake and flooding in Thailand are also behind the industry, which also fueled his prediction.


“With the age of cars and trucks on the road today at an average 11.1 years, many consumers feel they can no longer delay making a purchase of a new or newer vehicle,” said Taylor, whose top five reasons for his optimism were pent-up consumer demand, a return to stabilized credit, an influx of options, gasoline prices and home prices.


New model releases, which have caught the eyes of consumers, are another reason for his optimism.


“Consumers want new cars and light trucks,” Taylor said. “We can see that in strong auto show attendance and sales numbers for January.”

Ad Loading...


The numbers also show that one- to five-year-old used vehicles are in short supply and selling at higher-than-usual prices. That has resulted in more consumers seeking out new-car purchases.


“Interest rates on new-car loans will remain historically low in 2012 and 2013, due in part to policy decisions by the Federal Reserve Board to keep rates low and the U.S. economy growing,” Taylor said. “As a result, affordable credit will be widely available in with more automaker finance companies offering low-interest and interest-free loans for up to 60 months.”


General Motors, Ford, Chrysler and Volkswagen, heartened by the boost in consumer confidence, have been quick to launch new products that compete with those offered by other automakers. The excitement over styling, fuel efficiency and other options has driven more consumers to the showrooms, Taylor pointed out.


“The interest in new cars also reflects the lack of used cars with low mileage,” Taylor said. “During the recession, five million cars didn’t come into the marketplace as trade-ins.”


Gasoline prices also could hurt or help sales in 2012. In 2011, gasoline prices averaged $3.51, up 72 cents per gallon from 2010’s average, according to industry sources. This year, analysts predict another boost in prices that could bring gasoline prices to $4.13 a gallon. Taylor, however, said better weather conditions this winter offers some hope that prices won’t rise too high this year. If they do, however, Taylor expects consumers to once again turn to fuel-efficient vehicles.

Ad Loading...


“Many consumers think if they’re going to buy SUVs or other light duty trucks, they had better do it now, with gas reasonably affordable,” said Taylor, who noted that future fuel-related regulations could also prod consumers to buy those vehicles now.


Although real estate prices and values are still falling in some states, Taylor said home prices appears to be stabilizing overall. This should help to boost consumer confidence this year, he said.


“Stabilizing home prices will support stronger car and light truck sales over this year,” Taylor said.

More Industry

Five men smiling for photo in front of Honda car dealership.
Industryby Lauren LawrenceSeptember 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Ad Loading...
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Ad Loading...
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...