That’s according to an industry report that showed a sharp decline in auto sales across all auto makers—see table. Coming after months of sluggish sales and generous incentives, the big drop in April sales could be a sign of an impending collapse which could parallel that of 2008-9. There's a compelling reason for that: pent down demand, which for years has been “stealing” sales from the future. That’s what happened in the six years that preceded the 2008-9 collapse in US auto sales. While higher debt levels boost auto sales in the short-term, those debt levels depress them in the long-term, as debt payments chip away at spending, setting the stage for the next collapse in automobile sales.

Source: Forbes May 03, 2017 19:18 UTC