ARLINGTON, Va.—Total vehicle sales grew in January, jumping to 16.6 million annualized units from 16.2 million during the month. Sales, however, fell 1.4% since this time last year.
NAFCU Chief Economist and Vice President of Research Curt Long pointed out that light truck sales have continued to drive most sales as auto sales are down significantly year-over-year.
"Low interest rates and stimulus checks will continue to fuel vehicle sales. New sales are also bolstered by the high prices of used vehicles, up 15% year-over-year," said Long. "It will be some time before services spending rebounds. Until then, many households flush with cash will be eager to spend on consumer durables. NAFCU expects strong vehicle sales throughout 2021."
Sales of cars rose slightly during the month, increasing from 3.6 million annualized units to 3.7 million, but they remain down 15.1% year-over-year.
Light truck sales have been strong since the start of the pandemic, having risen 1.3% compared to January 2020.