• October 9, 2008

J.D. Power and Associates says the U.S. auto market will end the year at 10.8 million units, which is 2 million units below 2007 sales. The firm says two-thirds of the decline can be attributed to consumers delaying vehicle purchase.

On average, per the firm, consumers are keeping their vehicles four months longer in 2008 compared with 2007--up from 67 months to 71 months.

The remaining one-third of the volume decline comes from reduced leasing and a decline in fleet sales. J.D. Power and Associates forecasts total new light-vehicle sales--which includes both retail and fleet sales--to drop to 13.6 million units in 2008, registering a 16% decline from 16.1 million units in 2007.

The firm says next year won't be much better, with total new light-vehicle sales dropping to 13.2 million units and the retail sales market declining to 10.6 million units.--Karl Greenberg