Paul Taylor Vehicles Quotations

Today's interest rate hike ... will only modestly affect overall auto sales. Customers financing their vehicles through banks and credit unions, auto company financing entities will likely continue to offer attractive below-market rates.

For our industry, that means diminished overall consumer spending, but NADA Industry Analysis believes that the economy will continue to grow from investment spending and increased exports, particularly to Japan and Europe. We think world automotive producers will continue to find ways to maintain yearly sales of at least 16.8 million units of light vehicles in this growth environment as we move into 2007.

The impact will be concentrated on specialty and sports cars and vehicles over $50,000 in price, continuing the modest pattern of slower growth in luxury-vehicle sales.