It looks like auto sales in the United States are on track for a record-setting year in 2015.
According to a new report from J.D. Power and Associates, the U.S. auto industry is on track to move 13.83 million cars in 2015, just barely besting the 13.8-million unit record which was set in 2004.
The overall improvement in the economy along with consumer demand for newer, more fuel-efficient vehicles outfitted with the latest infotainment technology has been driving demand in the industry according to the report.
Not only are sales up, the amount people are paying for cars is climbing as well, with the average transaction price paid by consumers sitting at $30,026. “Consumers are able to pay more for the cars and trucks they’re buying because auto loan interest rates have been so low,” said J.D. Power’s Deirdre Borrego. “At the same time lenders are writing loans for longer terms, so monthly payments have stayed relatively flat for car buyers.”
About one third of all new car loans are for a term of six years or more, while the percentage of borrowers that are falling behind on loans currently sits below average.