Hamilton County auto sales best since 2008

U.S. sales hit all-time mark

Brent Morgan and his brother, Dwight, have just finished a $2.2 million renovation of their Integrity Buick GMC Cadillac dealership in Chattanooga. Next up, starting in the spring 2016, are plans to refresh the nearby Integrity Chevrolet store, the co-owners said.
Brent Morgan and his brother, Dwight, have just finished a $2.2 million renovation of their Integrity Buick GMC Cadillac dealership in Chattanooga. Next up, starting in the spring 2016, are plans to refresh the nearby Integrity Chevrolet store, the co-owners said.

Jim Higdon of Kelly Subaru said the Chattanooga dealership last month sold "everything we could get a hold of."

"I think we're on an uphill climb," the dealership's business manager said Tuesday after Hamilton County reported new car and truck sales last year were the best since 2008.

The number of new vehicles titled in the county rose 3.8 percent last year from 2014 to 13,020.

December U.S. sales

Brand and percent change over a year ago: › Nissan - up 19 percent› Fiat Chrysler - 13 percent› Toyota - up 11 percent› Honda - up 10 percent› Ford - up 8 percent› Hyundai - down 1.5 percent› Volkswagen - down 9 percent

photo Chart of Hamilton County vehicle sales.

Still, the county's figures weren't as strong as the nation's as 2015 was a record year in the U.S.

Auto sales hit a high of 17.47 million nationally in 2015, topping the old record of 17.35 million set in 2000. Analysts expect sales could go even higher this year as unemployment continues to decline and more young buyers enter the market, although rising interest rates could limit some new car sales this year.

Buyers last year continued to flock to trucks and sport utility vehicles both nationally and in Hamilton County.

In the county, the 663 new trucks and SUVs titled in December was the best for the month since 2004 when the mark was 683 and total vehicle sales were 17,685, according to the Hamilton County Clerk's Office.

Dariele Wilson of Chattanooga said Tuesday her boyfriend is in the market for a Ford Mustang. She said he feels good about his economic situation.

Josh Chapman said he bought a new car about a year ago, noting he got "a reasonable deal" on a new Hyundai.

"I'm usually a Honda guy," the Chattanooga Hyundai owner said.

Akshay Anand, a Kelley Blue Book analyst, said consumers brushed off the small rate hike by the Fed last month, citing low gas prices, available ccredit and quality product on dealership lots.

He said that "barring unforeseen economic circumstances, 2016 should continue the trends we've experienced in 2014 and 2015."

Oliver Strauss, the chief economist at car buying site TrueCar.com, said the interest rate would have to reach 3 percent before it would cause car sales to stagnate.

December's figures were the best for the month in the history of the U.S. auto industry, with sales of 1.6 million cars and trucks. Warm weather helped, along with the usual round of holiday promotions. TrueCar.com said incentive spending rose 4 percent over last December to an average of $3,063 per vehicle.

Employment numbers also improved last year, so more buyers - particularly the huge generation of under-34 millennials - found they could finally afford a new car.

People who held off purchases during the recession were also lured back into the market by enticing new vehicles like the Jeep Cherokee and the revamped Ford F-150 pickup.

Ford sold 780,354 F-Series trucks last year - more than one every minute - making it the nation's top-selling vehicle.

General Motors led all automakers in the U.S. last year, with sales up 5 percent to just over 3 million cars and trucks.

Ford was the best-selling individual brand for the sixth straight year, with sales of just over 2.5 million.

Subaru set an all-time sales record in 2015 of 582,675 vehicles, up 13.4 percent over 2014. December marked the best-ever sales month in company history.

The Associated Press contributed to this story.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.

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