Car Buyers May be Cautiously Coming Back

Washington DC June 4, 2009; The AIADA newsletter reported that after a long hiatus, American consumers appear ready to return to auto showrooms to buy new cars, experts say, although not in the large numbers seen in past years.

MSNBC reports a rise in new U.S. car sales in coming months would be a welcome development for the nation's automobile industry. A nasty recession has decimated sales to less than 10 million vehicles a year—a drop of more than 40 percent from past years—and helped force General Motors and Chrysler to file for Chapter 11 bankruptcy protection.

To be sure, consumers still face strong economic headwinds that could quell new car purchases, including rising unemployment, rising home foreclosures, and continued stinginess among banks and other financial institutions over lending money.

However, experts are optimistic about stronger new car sales on the horizon, pointing to renewed consumer confidence, a recent surge in the stock market, and a greater willingness by banks and other financial institutions to lend consumers money. On Wednesday,

AIADA released its MarketWatch sales figures for the month of May, pointing to the fact that nationwide auto sales seem to be stabilizing.

For more MSNBC coverage of what many see as signs of hope in the auto industry, click here.