National Automobile Dealers Ass. Predicts Record Year for New-Vehicle Sales

8 July 1999

    WASHINGTON, July 7 -- Fueled by the strong economy and solid
consumer confidence, demand for new vehicles has hit new levels, resulting in
record-breaking sales for the nation's franchised new-car and -truck dealers,
according to the National Automobile Dealers Association.
    "Despite the modest interest rate hike, NADA still expects 1999 light-
vehicle sales to surpass the 16-million unit mark, shattering the all-time
sales record set in 1986," says NADA chief economist Paul Taylor. "During the
second half of the year, dealers can expect sales to slow a little, but 1999
is still on track for the best sales year ever."
    Franchised dealers sold more than 1.6 million new-vehicles during the
month of June, a 2.2 percent increase over one year ago. The daily selling
rate reached 61,923 units. "Strong luxury sales during the month of June were
the result of continued strength in the stock and bond markets and firm
economic conditions, even with the federal rate hike. That's a good sign for
the future," according to Taylor.
    The National Automobile Dealers Association represents more than 19,500
franchised new-car and -truck dealers holding nearly 40,000 separate
franchises, domestic and import.