Edmunds forecasts that 17.1 million new vehicles will be sold in 2020.
A 17.1 million total would match 2019’s total and mark the sixth year in a row that new-vehicle sales would top 17 million.
"The auto industry has some decent tailwinds heading into 2020: Strong economic factors such as low unemployment and high consumer confidence are carrying over from last year, finance rates are expected to remain relatively stable, and this is a presidential election year, which historically tends to correspond with a year-over-year lift in new vehicle sales," said Jessica Caldwell, executive director of industry insights at Edmunds.
One roadblock in the auto industry’s path toward 17.1 million is rising transaction prices. The average transaction price for a new vehicle in 2019 climbed to a record-high $37,183 and prices are only expected to rise, Edmunds noted.
Vehicle sales are also expected to become greener, as hybrid vehicles are experiencing a resurgence in buyer interest. Edmunds analysts expect hybrid vehicle sales to grow 18% in 2020, which would push the green car market to a record market share of 4.8%.
Sedan sales are expected to continue to drop in 2020, sedan market share is expected to drop to 24%.
Pickup trucks are also expected to grow in market share, Edmunds analysts predict that crew cabs will comprise 80% of all truck sales in 2020.
And, CPO sales should also reach a record high, as off-lease supply should remain healthy.
Originally posted on Vehicle Remarketing