The National Automobile Dealers Association (NADA) is reporting that light vehicle sales are on a pace to reach the organization’s previously forecasted sales of 17.7 million vehicles in 2016. A strong first quarter of automotive sales, assisted by low interest rates, low gasoline prices and the introduction of many new vehicles with improved fuel and safety technology, are keeping forecasts positive for 2016.
NADA also reported the average transaction price on a new vehicle was nearly $34,000 at the end of the first quarter, thanks to an increase in light truck sales and the purchase of more options on vehicles. Low fuel prices are also helping to accelerate a long-term trend in U.S. motor vehicle sales that continues to favor light trucks over cars. NADA expects light trucks to account for 57 percent of the new vehicle market by the end of the year.