Americans are taking advantage of easy financing to replace old cars, and that bodes well for the auto industry in 2016, says Rebecca Lindland, senior analyst at Kelley Blue Book. Bobbi Rebell reports.
Marcus sales numbers for the auto industry in January hearing more if Kelley blue book senior analyst Rebecca and great to have you thank you so much happening OK so these numbers for a lot better than many people expected you say you're not surprised tells us I was not surprised. We weren't sure how this snowstorm would impact them fine we still got an eleven year old part to deal with it biffle is free agent of vehicles. People are seeing there in their homes with really old cars and trucks and they need to be replaced and they got. Great interest rates going on we still have a lot of really good incentive so. I was an house price actually why do you think. The industry that month was shorter than usual you're selling is we have this news or why didn't that work in the meaning to replace. Craftsman of it what. I think it would just a lot of momentum coming and I think people are really excited we had a record year. In 2015. To ferret this was like the third heists are there guys might be ready for January. Since 1976 so it was definitely. Very very good month. And do you feel like people believe in the moment community believe that the that the economy's recovery and they believe what they see now bank and that's that's a good feeling. Even though the stock market and now is that something that we should be focusing on the path of death as well. Well. And we but now that you know Wall Street doesn't really love the industry hit it eight. But there is a lot of it'd disconnect between how people feel. Going into one month and what happens on the stock market that's it you know a lot in the long term view and say. If I'm not retiring tomorrow this isn't really impacting me it's fun to go through this really impact you mean in reality it. My car is impacting me every day. That car is really old I need to get a new car my nieces. There's a lot of new products coming out so. He's in there are signs still among the car companies the companies who is doing and maybe needs to step up. Well it's. Always a mixed bag going in you know we have companies like GM is doing really really well Buick sales were up 45%. Which is really unprecedented. We've got four which had a little bit less momentum going and I they've got a lot of new products coming out is White House so I'm really like oversee that. And it occurs Chrysler with their cheap brand that cheap brand is just absolutely tap on it. EX you've got people graduating from high school and college that want cheap and you got hit on managers driving energy so to brand for all. What are auto makers in general doing to me this is attracting consumers that technology we hear is buzzwords and you were at auto show recently yes. Here's a lot of fantastic new technology and actually this. Is one of the reasons why encourage people that if they can afford to buy new car. Because it got so many more safety features on we've got things that GM has Wi-Fi in their vehicles. You know you can even entertain kids and I and the new Chrysler Pacifica minivan coming out. There's a lot of safety reasons that a new car justify. And there's a lot of technology that you can get into vehicles now say your prognosis for the rest of 26. So I think there's going to be a record year again I know a lot of people are concerned about the economy rightfully so. I I just look at the average age of the vehicles and I look at the opportunities to finance. A new car and a lot of good things that consumers can take it and it. You think I stayed there for. My only concern financing that we are getting very long. Terms that were we used to be like sixty months was the standard. Now are 72 and now hitting 84 so that one caution is I would encourage consumers. To think about can they afford that car at sixteen months. If they're going into the seventy to 84 because in the car payment. Need to look at maybe something more or partly he's I think yeah. I think it Kelley blue looks back at them talking about this as partners.