2006 Auto Sales 8th-Strongest

2006 Auto Sales 8th-Strongest

The nation’s franchised new-car and light-truck dealers recorded their eighth-strongest year on record in 2006, selling more than 16.5 million vehicles, down from 16.9 million in 2005, according to NADA Data, a comprehensive annual analysis compiled by NADA.

Light trucks outsold cars in 2006 for the sixth consecutive year, 8.7 million to 7.8 million respectively, but the gap closed somewhat. Light trucks made up 53 percent of total new-vehicle sales in 2006, down from 55 percent in 2005. Crossover utility vehicles, small cars, and large domestic sedans led the gains in sales last year, growing by 9.1 percent, 4.7 percent, and 1.8 percent respectively.

In contrast, pickup trucks fell 10.6 percent and SUVs dropped 11.7 percent for the year. In addition, NADA chief economist Paul Taylor projects that overall light-vehicle sales in 2007 will hold steady at nearly 16.5 million units.

–Strong car and CUV sales resulted from many attractive new products and quality customer service provided by franchised new-car dealers,” Taylor said. –Customer incentives appear to be rising along with the stock market, and that should help sales in the second half of 2007.”

–Interest rates will remain stable, and that will help sustain light-vehicle sales. But higher gasoline prices will change the mix of vehicle selling, which will be led by sedans and CUVs once again,” he added.

Other highlights in NADA Data:

· The average retail selling price of a new vehicle increased to $28,451 in 2006, from $28,381 in 2005.

· The average dealership annual payroll was $2.5 million in 2006, up from 2.4 million in 2005.

· The total industry payroll was $52.9 billion, up more than $1 billion in a year’s period, representing nearly 14 percent of the nation’s total retail trade payroll.

· The number of franchised new-vehicle dealerships in the U.S. dropped by 295, to a total of 21,200, reflecting an ongoing moderate consolidation trend.