Americans bought more cars and trucks last year, inspired by easier credit, an improved economy and the desire to replace aging vehicles that got them through the Great Recession.
Sales rose sharply for Detroit’s three carmakers and for Japan’s Nissan in 2011, aided by a surge in November and December. Analysts expect that momentum to continue into 2012.
Low interest rates, looser credit standards and pent-up demand are driving demand. The average age of a car on U.S. roads is the oldest ever, closing in on 11 years. Americans want to trade in those older vehicles now that a tentative recovery has begun and they’re feeling a little more secure about jobs and finances.
Buyers also were drawn out by an array of high-quality small cars with nice, roomy interiors and more features than in the past. That made it easier to downsize from bigger cars amid high gas prices. Pickups also sold well as business began to replace the trucks they need to haul equipment.
Car companies want sales to keep growing following a nearly 30-year low in 2009. The economy benefits from healthy car demand because it promotes spending on big-ticket items and creates jobs.