AUTO BODY REPAIR DISCUSSES NEW CAR REGISTRATIONS TOP 17M FIRST TIME SINCE 2006
Auto Body Repair has been following a comment from Brad Smith, Experience’s director of automotive market statistics. “It’s encouraging to see new registrations return to pre-recession levels, with lower interest and higher employment rates driving vehicle demand. While I’m sure the auto industry would like to continue this growth annually, it is important to continually monitor data trends and economic indicators to identify shifts in demand and adjust business strategies accordingly.”
So, why does Auto Body Repair find this exciting? For the first time in nearly a decade, we are registering higher numbers of new vehicle registrations and that means more cars on the road with comprehensive coverage, the group that is most likely to bring business to auto body repair shops.
The increase is primarily in light duty vehicles, those that are typically used for family daily drivers. The number of vehicles registered is nearly identical to previous years, and the shift to new vehicles is being attributed in part to the many models of hybrid and crossover SUVs. They are seen as being more utilitarian, providing drivers with more options than sedans or trucks and they are more economical to operate than the full sized SUVs that have been popular in recent years.
Auto Body Repair is glad to see that the automotive industry at large is returning to pre-recession numbers. This bodes well for our business and the economy at large, since vehicle sales are a prime indicator of how families feel about their own economic outlook. New cars typically mean more disposable income, which leads to sales in soft goods and other markets.
Five makers are responsible for the lion’s share of the new vehicle sales. Ford, Chevrolet, Toyota, Honda and Nissan managed to sell 54% of the 17 million new vehicles registered in 2015. These brands are often known for economical, hard-working models that are popular with families and working class Americans, who make up the bulk of body shop clientele. Welcome back American drivers, we’re glad to see that you are doing better.
If this trend continues, the developments in Auto Body Repairs that have been on the rise in the last few years will continue, making high tech auto body repairs more readily available to drivers across the board, whether yours is a brand new showroom model, or a classic that needs a little help to maintain its great looks.