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New vehicle sales are expected to rise in the U.S. next year to their highest level since 2019, CNBC reports.
The rise in sales is expected to be led by lower interest rates and improving affordability, according to industry analysts.
Cox Automotive expects new light-duty vehicle sales to hit 16.3 million in 2025, slightly higher than forecasts by S&P Global Mobility and Edmunds of roughly 16.2 million sales next year. Sales would be up from expectations of 15.9 million to 16 million this year and mark the highest results since roughly 17 million in 2019.
The increase is also expected to be driven by a continuing “normalization” of vehicle inventories, incentives/discounts from automakers and easing financing and loan rates.
“Consumers are still feeling the pinch, but the market has become a slightly friendlier place for car shoppers than it was at the start of the year,” Jessica Caldwell, Edmunds’ head of insights, says in a Tuesday release.
