New vehicles a big hit in Iowa in 2015

Iowa saw a 3.2 percent increase in new vehicle registrations in 2015, marking at least six straight years of gains for new automobiles and a bounce-back after a stagnant 2014, according to data from the Iowa Automobile Dealers Association.

Bruce Anderson, president of the association, which represents 300 dealerships in Iowa, cited strong credit rates, aggressive incentives and pricing from dealers looking to gain market share, pent-up up consumer demand and rapidly advancing technology.

'The average age of our fleet is 11 years,' Anderson said. 'A new car now is a lot different from 11 years ago. It's cleaner, more efficient and there's many more driver-assist features.'

In 2015, Iowa registered 142,066 new vehicles, which was up from 137,663 in 2014, according to the data. Two years ago, in 2014, annual sales had nearly stalled with a .7 percent increase over 2013 in new vehicle registrations.

Iowa new vehicle registrations

Gas prices have stayed low, unemployment numbers are down and people are buying cars again — a stark contrast to when the industry tanked in the midst of the financial crisis.

Iowa's numbers are in line with national car sales trends.

Across the country, automobiles sold at record numbers — 17.5 million — in 2015, breaking the old mark of 17.3 million in 2000, the Washington Post reported.

Dave Wright, owner of Dave Wright Subaru Nissan in Hiawatha, said 2015 was his best year ever.

New car sales spiked 25.2 percent, he said, and used car sales soared 15.75 percent. He credits the popularity of his brands and the company opening a new dealership.

'We've been pretty blessed,' Wright said. 'We've grown double digits each year we've been here — the last 10 years, but nothing like the sort of double digits we saw last year.'

Wright closely monitors down payments and luxury options, such as sunroofs, navigation systems and leather seats, to gauge market health. Those metrics were way up in 2015, he said.

'Our economy, at least in Eastern Iowa, seems to be good,' Wright said. 'There seems to be more confidence in market.'

The Nissan Rogue, a sport utility vehicle, was his top seller in 2015 but SUVs in general performed well, he said.

That mirrors national trends showing strong markets for SUVs, crossovers and pickups, while car sales flounder.

The Rogue had the nation's largest market increase in 2015 at 44 percent, although the Ford F series pickup was the top seller, according to data from MotorIntelligence.com.

Of Iowa's new vehicle registrations, cars accounted for 43,951 and trucks made up 98,115, according to the association.

'It just appears to me Iowans love trucks,' Anderson said. 'They love pickup trucks. The farm economy has been flat or soft, but it hasn't affected truck sales. That part of the fleet continues to grow.'

Gavin McGrath, general manager of Pat McGrath Chevyland in Cedar Rapids, said sales were up for all 10 brands in the McGrath new car roster except Volkswagen, which lagged after a recall. He said after a vacuum in new car sales in 2014, General Motors ramped up incentives, advertising strategy and model designs, and vehicle technology 'has come along way.'

'The stars aligned, and with our momentum still going we are excited for 2016,' McGrath said.

Paul Trombino, director of the Iowa Department of Transportation, said Iowa's fleet of vehicles has been turning over, as evidence by increases in new vehicle registrations in recent years.

Vehicle registration fees make up a portion of the road use tax fund, which pays for maintenance and construction of highways, county roads and city streets.

'It has the potential to be put directly into infrastructure,' Trombino said.

New and newer vehicles pay a higher registration fee than older vehicles, which helps offset losses as people drive more fuel-efficient vehicles and thus pay less in gas taxes, which also helps pay for roads.

New vehicle registrations/ percent increase.

2010 103697

2011 118653 14%

2012 130420 9.9%

2013 136668 4.8%

2014 137663 .7%

2015 142066 3.2%

Source: Iowa Automobile Dealers Association.