Recently releases sales figures for the Big 3 automakers, (i.e., Ford, GM, and Chrysler), indicate 2016 was a landmark year for auto sales, up from 2015. The trend in sales increases has continued to steady grow for the past seven consecutive years, after the Big 3 automaker crisis and government bailout of GM and Chrysler. Sales jumped from 17.47 million vehicles sold in 2015 to 17.55 million vehicles sold in 2016.
While this is great news, the incentives, deals, and offers found at your local new and used cars dealerships required them to combine offers like never before. As a result, this could impact the future of auto sales in the coming year. People are going to expect the same types of incentives as they have received the past two years in order to continue to consider purchasing vehicles.
If automakers start to cut back on the promotions they offer through dealerships, consumers make start to “cool” to the prospect of buying new cars and trucks. Consumers will attempt to hold out until they can secure the very best deals. In all likelihood, 2016 will be the top record year for some time, unless the automakers are willing to cut deep into their profits and attempt to push for an even higher number of sales in 2017.
Part of the reason for the increase in incentives, especially during the last quarter of 2016, was due to shifts in the market. Both trucks and SUVs are in high demand, so, while the deals on the those were great, the best savings came for those looking for compact and mid-sized vehicles, as automakers tried to sell off excess inventories.
For 2017, expect automakers to scale back production of compact and mid-sized vehicles and increase production of their top-selling trucks and SUVs, like the Ford F-Series of trucks. The Ford F-150 is in its 40th year of production and is the preferred truck of the NFL. Furthermore, the F-Series has been the best-selling truck line for 40 consecutive years running, and the top-selling brand out of all vehicles, including cars and SUVs, for 35 years.
By reducing production of slower selling models and increasing production of highly demanded models, it will reduce the number of deals and incentives automakers will need to make to entice and attract buyers. Whether automakers will be able to top the record they set in 2016 will depend on several factors, including many of the unknowns like gas prices, economic growth, and a new president, which all could have an effect on the auto industry.
That, however, does not mean you will not be able to find great deals on new and used cars for sale in Indianapolis and elsewhere. It just means you may have to shop around a little to find the best prices and incentives. To discover the latest deals and offers, stop on by your Indianapolis Ford dealer, Bloomington Ford or call 812-331-2200 today!