By on December 3, 2015

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Executives at Toyota say they expect extraordinary car sales to continue for two more years — although they may not be record-breaking years — before the industry finally slows from its current pace, Bloomberg reported (via Detroit News).

Low gas prices and a better economy will lead automakers to nearly 18 million car sales this year, which could surpass the previous record of 17.4 million set in 2000.

Next year may not be as good as this year, according to Bob Carter, senior vice president of operations for Toyota in the U.S., but it could be close. Even at 17.4 million sales for 2016, industry-wide, “you’re still going to see a smile on all of our faces,” he told Bloomberg.

Even if sales aren’t as brisk, carmakers will still push for everything they can. Automakers may be fueling those sales next year with higher-than-normal incentives to jockey for market share before sales eventually turn down, according to the report.

Toyota’s incentives on their cars are about 14 percent higher than they were last year, Eric Lyman, a vice president at TrueCar, told Bloomberg. Those incentives include cash back on top of interest-free financing for models such as the Camry, Avalon, Corolla, Sienna, Rav4, Prius, Prius c, Prius V … you get the idea.

Automakers are already steeply discounting many of their cars to bolster bottom lines in a favorable market (Nissan Leaf, I’m looking at you) and with the average vehicle age still over 10 years, those steep discounts are likely to continue.

Although 2016 may still be a good time to buy a car, money has never been cheaper now — and it won’t last forever.

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6 Comments on “Toyota: The Car Sales Party Will Go On For 2 More Years...”


  • avatar
    DeadWeight

    Imagine that: Auto execs with rosy/unicorn sales projections after a blistering 4 year torrent of satiation of pent-up demand.

    It’s as if these guys (*cough* Bob Carter *cough*) are anything other than fantastically bullish in their future projections, so I take his forecast very credibly, as it’s free, and is analogous to the results spit out by an already flawed algorithm run on an abacus discounting a world on fire in terms of financial stress (China, EU, etc.) and geopolitics.

    • 0 avatar
      stuki

      There will always be plenty of pent up demand for a new car from people who cannot afford them. All you have to do, is let them have it anyway, then have the Fed and government make those with less pent up demand pay the not when it comes due. Auto execs as a group contribute more to campaigns than your and me, after all.

  • avatar
    VW16v

    With the hybrid RAV4 coming out next year. This will be easy for Toyota to lead in sales for the next two years.

  • avatar
    zip89105

    I’m more inclined to believe folks driving 12 year old vehicles like myself are contributing to the car sales party, only this time around I didn’t buy a new Toyota.

  • avatar
    Jerome10

    I’ll take the under on that.

    Or let me clarify… I’ll take the under that this sales rate will NOT continue in 2016 at incentive levels near where they are today. Maybe they can hold the sales but the “quality” (or whatever you would call it) of that sale is going to decrease.

    And I don’t think you’re seeing a bump in spending from low gas prices. Huge swath of America still hurting for quality jobs and pay. And at the same time seeing massive increases in the cost of their health insurances. On top of a nation already swimming in enormous quantities of debt.

    I’m sorry but I just don’t see it happening. Sales IMHO already too hot, with loan quality already dropping. Won’t go much longer.

    I eagerly await those floods of 3 year off lease vehicles frankly. Especially sedans since nobody wants those anymore. Would love to pick up a nice Avalon or high end Hyundai or Kia with wretched depreciation for a song.

  • avatar
    thornmark

    >>Toyota: The Car Sales Party Will Go On For 2 More Years<<

    Only w/ increasingly larger incentives. Saw an ad for the popular Kia Soul yesterday

    – no payments for 5 months &

    – first two payments on Kia &

    – 0% interest.

    The AExtremist guy is saying that even the luxury brands are being eviscerated by high incentives, no doubt led by discount brands like Infiniti. Basically says the Toyota statement is pure bunk.

    “…if they have to slap on cash and incentives in a “hot” market, what happens when it cools? I’ll answer that for you: It’s going to get ugly real quick.”
    -AutoExtremist

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