Edmunds Experts Forecast 17.1 Million New Vehicles Will Be Sold in 2020
SANTA MONICA, Calif., Jan. 16, 2020 /PRNewswire/ -- 2020 is looking to be another year of historically high new vehicle sales for the automotive industry, according to a new report from the car shopping experts at Edmunds. As part of the Edmunds 2020 Automotive Industry Trends Report, analysts forecast that a total of 17.1 million new vehicles will be sold in 2020, matching last year’s tally and marking the sixth year in a row that new auto sales will top 17 million.
“The auto industry has some decent tailwinds heading into 2020: Strong economic factors such as low unemployment and high consumer confidence are carrying over from last year, finance rates are expected to remain relatively stable, and this is a presidential election year, which historically tends to correspond with a year-over-year lift in new vehicle sales,” said Jessica Caldwell, executive director of industry insights at Edmunds.
Although new vehicle sales are expected to be in a healthy place this year, Edmunds analysts note that rising prices present some roadblocks for the industry. According to Edmunds data, the average transaction price (ATP) for a new vehicle in 2019 climbed to an all-time record of $37,183, and prices are only expected to keep rising.
“Prices are shooting up because shoppers are opting for pricey SUVs and trucks packed with more high-tech options than ever before,” said Caldwell. “These increased costs, combined with the discontinuation of more affordable options like domestic passenger cars, could prompt shoppers to shift their focus to the used market — or delay their purchase altogether.”
The Edmunds Industry Trends Report also takes a deeper look into other major factors that will shape the industry through 2020:
To read the full report, visit the Edmunds Industry Center.
Edmunds guides car shoppers online from research to purchase. With in-depth reviews of every new vehicle, shopping tips from an in-house team of experts, plus a wealth of consumer and automotive market insights, Edmunds helps millions of shoppers each month select, price and buy a car with confidence. Regarded as one of America’s best workplaces by Fortune and Great Place to Work, Edmunds is based in Santa Monica, California, and has a satellite office in Detroit, Michigan. Follow us on Twitter, Facebook and Instagram.
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