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Jeffrey Lupient's Blog

Tag Archives: car industry

The U.S. car industry ended 2017 with a dip in sales—about 17.1 million units—but things are looking up this year. The key here is for automakers to make good on their plans of giving more generous incentives for boosting sales. If these push through, we could see a better figure for cars sold by the end of 2018.

Image source: theverge.com

According to industry experts, the recent lower sales are due to more consumers keeping their cars. Increased reliability is making car users hold on to their vehicles for longer. Also, an estimated three million leased vehicles are not returning and adding to the supply.

But two other trends are pushing the industry onward: electric cars and ride-sharing. The challenge for electric vehicles is to entice purchases, as while people are intrigued, they are still not ready to embrace the technology. The main disadvantages for now are shorter duration on the road, the high price, and few charging stations open to the public. But manufacturers are keen on having these environment-friendly cars with zero emissions on the streets.

More and more Americans are choosing the convenience of ride-sharing, utilizing riding apps like Uber and Lyft to get around. Millennials are tentative about tying up their money with car payments. But ride-sharing is not disruptive enough to make a big dent in industry sales; consumers should understand that these rides are but the replacements of cabs.

Image source: chevrolet.com

Jeffrey Lupient is the president and CEO of the Lupient Automotive Group. He has been involved in his family’s chain of car dealerships since he was young. For more insights on the automobile industry, visit this blog.

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