A recent report by BMO Economics projects that North American auto sales will reach a seven-year high. Despite slow sales in the beginning of the year, BMO economists suggest that the second quarter’s impressive 16.6-million-unit pace indicates a strong demand in the market. BMO reports that American consumers are buying more new vehicles, and based on the current purchase pace, sales may break the 18-million-unit mark for the first time since 2007.
The report explains that a mix of low interest rates, aging vehicles, and increased consumer confidence has created a demand that will sustain the industry for several years. According to Alex Koustas, an economist for BMO Capital Markets, the pace of automobile sales in the North American market will sustain dealers and manufacturers.