New car sales on the rebound; less holiday travel by car

Dealerships, like this Ford showroom in Vermont, can expect more customers in the next two years. (Toby Talbot / The Associated Press)

Study: new car sales to jump by 2013
New vehicle sales in the U.S. will rebound to 16 million by 2013 as consumers stop delaying purchases and lenders resume doing business with sub-prime borrowers, according to the consulting firm's A.T. Kearney's annual study. The age of the average vehicle on American roads is at a post-World War II high -- 10.4 years old. That indicates the pace of new vehicle sales will accelerate in the next few years, the study says. Kearney predicts new vehicle sales this year will reach 13.2 million, about on track with other estimates throughout the industry.

--The Associated Press

(The Associated Press)

Holiday travel up, but not thanks to cars
AAA expects 34.9 million Americans to travel 50 miles or more over the long holiday weekend. That's slightly more than a year ago but less than the 35.3 million who traveled over Memorial Day 2007 before the recession. Gas prices are having an impact on travel decisions: About 88 percent will travel by car, a slight decline from a year ago.

--The Associated Press