Buying Habits Are the Latest Automotive Import

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Washington DC May 4, 2009; The AIADA newsletter reported that the Los Angeles Times says that tighter credit, depleted retirement savings, and environmental concerns are among the forces reshaping the U.S. auto market into something that looks more like Europe and the rest of the world—where people buy smaller, more efficient cars and hold on to them longer.

No one is expecting Americans to turn into a nation of fuel-sipping frugal pragmatists, but most analysts see little chance that the market will bounce back to its recent heights.

For eight years, starting in 1999, the nation consumed an average of 16.9 million autos. This year will see sales short of the ten-million mark, the lowest since 1963.

To see a chart of U.S. automotive consumption over the past several decades, click here.

Experts say that in order for the industry to thrive in future years, a new range of consumer buying habits, brought on by the changing economy and demographic, must be considered. Some of these factors include a need for fewer cars, lack of available consumer credit, and greater demand for vehicle reliability.

To read the full article on how the economy is influencing automotive consumer behavior,click here.