Sterne Agee: 2014 U.S. Light Vehicle Sales Likely Best Year Since 2006

Michael Ward of Sterne Agee commented in a note on Friday that U.S. light vehicle sales for December are expected to maintain an industry wide Seasonally Adjusted Annual Rate (SAAR) of 16.8 million units. Ward expects 1.5 million light vehicles were sold in December, representing an 11 percent year-over-year gain for the month. For all of 2014, U.S. light vehicle sales are expected to reach 16.4 million units, the highest annual total since 2006. "Heading into the year, most expected sales of about 16.0 million units; after a weather-related slow start to the year the pace has been consistently positive since March," Ward wrote. The analyst adds that sales exceeded 16.0 million units on a SAAR basis in nine consecutive months and averaged 16.8 million units since June. Looking forward to 2015, Ward expects the age of U.S. vehicle fleet to remain the oldest on record. As such, 2015 light vehicle sales are expected to reach 16.7 million units and will further improve in 2016 with an estimated 16.9 million units sold.