U.S. auto sales are expected to reach a record high of 17.5 million in 2015, topping the old record of 17.35 million set in 2000. The Associated Press reports analysts expect sales could go even higher this year as unemployment continues to decline and more young buyers enter the market.
Automakers reported December and full-year sales this morning, showing Americans are buying more cars and trucks than ever before. General Motors led all automakers in the U.S. last year, with sales up 5% to just over 3 million cars and trucks. Ford was the best-selling brand for the sixth straight year, with sales of just over 2.5 million. Volkswagen, meanwhile, saw sales plummet after it admitted in September that its diesel cars cheated on U.S. emissions tests.
Low gas prices and historically low interest rates left more money in buyers’ pockets. Nationwide, gas prices ended the year at an average of $2 per gallon, according to AAA. And while the Federal Reserve raised a key interest rate in December, it remains near zero. By comparison, that rate was 6.2% in 2000. Oliver Strauss, the chief economist at car buying site TrueCar.com, says the interest rate would have to reach 3% before it would cause car sales to stagnate.
Employment numbers also improved last year, and more buyers—particularly the under-34 Millennials—found they couldn’t afford a new car. People who held off purchases during the recession were also lured back into the market by enticing new vehicles like the Jeep Cherokee and the revamped Ford F-150 pickup. Ford sold 780,354 F-Series trucks last year—more than one every minute—making it the nation’s top-selling vehicle.
