By Alex Perdikis
New car sales declined in 2017 for the first time in seven years. Dave Sargent, J. D. Power’s vice president of global automotive, predicts sales this year will be “OK, but not great.” Will new car sales rebound in 2018? Will SUVs and CUVs continue to dominate? What does it all mean for you if you’re thinking of buying a new car this year? Here’s what you need to know.
What Happened?
Why did new car sales slow so drastically in 2017? Several factors came into play. One reason is that new cars coming out now are super reliable and consumers don’t feel the need to purchase new as often.
Another factor is the popularity of vehicle leasing. Approximately 3 million leased vehicles moved into the used car market, adding to the already hefty supply of high-quality used cars available for purchase. Last year, consumers discovered they could get a lot more for their money by buying used instead of new.
What does it mean for you if you want to buy a new car? With inventory stacked up, you just might find great deal at your neighborhood auto sales dealer.
Looking Ahead
Automakers have one ace in the hole — the SUV. The SUV, along with the crossover utility vehicle (CUV), is expected to make up the bulk of sales this year as it did last. Sedans, even with lower price tags, are simply not as appealing. J. D. Power’s Sargent predicts U.S. SUV/CUV sales of 16.7 million to 16.8 million units this year which is a healthy, if not super, number.
Safety is Tops
A trend that continues in 2018 is advanced safety features. An Autotrader Car Technology Impact Study published in 2017 found that 70 percent of respondents preferred advanced safety features than entertainment or information options.
“Many premium choices of a few years ago will become standard in new car rollouts. Rear-facing cameras became mandatory in new vehicles this year.”
— Alex Perdikis
Many automakers currently include safety features on various models.
Manufacturers have also begun adding advanced safety features for specifically for teenage drivers. Audible alerts when the driver exceeds preset speed limits and parental notification warnings are two of the most popular features.
Connectivity & Telematics
The Autotrader study also found that telematics, the seamless connection between multiple devices, is attractive to car buyers.
For drivers, telematics means they can step into their car and have a Wi-Fi connection through the use of their phone’s 4G LTE connection. Once the province of luxury brands, Wi-Fi is now showing up in more popular, less pricey vehicles.
Infotainment is another former luxury feature that’s showing up in less expensive models. Touch screens and device syncing provide a host of functionality and play, including music, navigation, games and video.
Electric Cars are Still a Question Mark
Carmakers and consumers agree — the electric car is an intriguing prospect. The thought of driving a zero-emission green car is certainly compelling. But, electric car sales are still painfully slow and with good reason. Electric cars aren’t ready for prime time yet.
The difficulties of driving electric put them out of the running for most car buyers even if they like the idea. No long road trips, few public charging stations and higher prices — electric cars work well only for drivers in specific areas with precise requirements.
The electric car made up only 0.4 percent of vehicle sales in November 2017. However, that small number is a 17 percent increase. There’s certainly an interest in electric vehicles, but the currently available models and lack of resources to run them don’t yet meet the needs of buyers.
Alex Perdikis, Koons of Silver Spring general manager and owner, lives in Chevy Chase with his wife and daughters.