In part due to the American people adjusting to the higher gas prices and in part due to the state of our economy and the slowly swelling job market; the auto industry will be driven by it’s consumers in 2007. New car sales have been at steady highs for the past few years, and after every high sales wave there must follow a trough of market saturation.
The driving force
One of the main driving forces behind the automobile industry is quite simply the price of oil. The hike in the price of gas changes the way consumers view their transportation. Unnecessary consumption is eliminated, and people are leaning towards more compact cars with smaller engines when they purchase. That said, most of the automobile purchases made in 2007 will be used cars, not new ones.