Automakers creep to another sales record in ’16

But higher gas prices expected to end run

Americans bought more new vehicles in 2016 than in any previous year, aided by a strong U.S. economy, easy credit and rising discounts, figures released Wednesday show.

The U.S. auto industry broke the record set in 2015, as sales rose 0.4% from 17.48 million vehicles to 17.55 million, according to Autodata. But in 2017, the industry’s streak of seven consecutive sales increases is likely to come to an end. Most industry executives and analysts say that rising interest rates and gas prices, combined with an end to pent-up demand, will cause industry sales to drop slightly.

Industry sales were pushed to new heights by a strong showing In December, when sales rose 3.1% to 1.69 million vehicles, compared to a year earlier, according to Autodata. The big finish to the month reflected many discounts to clear cars off the lots and fight rising inventories.

“Overall, it was a very, very strong year for the industry,” said Alec Gutierrez, senior market analyst for Kelley Blue Book. “But inventory was outpacing demand at the end of the year, causing higher incentives.”

The Detroit Three automakers — General Motors, Ford Motor and Fiat Chrysler Automobiles — all beat expectations in December. GM sales rose 9.9%, crushing Edmunds.com and Kelley Blue Book projections of 3.1% and 3.7%. Ford sales gained 0.1%, beating expectations of a decline. And Fiat Chrysler sales fell 8.8%, slightly better than expected as the company reduces its reliance on fleet sales, which are less profitable than sales to retail customers.

Toyota Motor’s U.S. sales were up 2% for December.