Toyota: The Car Sales Party Will Go On For 2 More Years
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.
More by Aaron Cole
Comments
Join the conversation
With the hybrid RAV4 coming out next year. This will be easy for Toyota to lead in sales for the next two years.
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.
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.
>>Toyota: The Car Sales Party Will Go On For 2 More Years