Industry watchers predict that the automotive industry in the United States will have one of its worst sales years in a decade in 2008, with expected units moved at under 15.5 million.

The forecast reflects multiple economic concerns generating fear and caution for the American consumer including upheaval in the credit markets, the ongoing mortgage and housing crisis, and a general "softening" of the economy.

The one bright spot in the prediction is that those people who do decide to make a car purchase will see higher incentives and bigger deals as companies put together packages to move their inventory.

J.D. Power and Associates, which makes an annual prediction of number of vehicles to be sold in a year, lowered that level from 15.7 million to 14.95, which represents the lowest potential level since 1995.

The chief economist for J.D. Power, quoted in The New York Times said, "The auto market is entering into a true recessionary phase, which is something we have not seen in the last 10 years."

The annualized rate for the first three months of 2008 has been 15.2 million units, but numbers are predicted to decline as the spring season progresses. In general, consumers are already burdened with debt, do not have an excess of cash, and are not interest in taking on car financing.

For their part, car finance companies are backing away from loans perceived as risky so as not to fall into the same trap that ensnared subprime lenders in housing. Michael J. Jackson, the chairman of AutoNation, told The New York Times, "We are faced with the dilemma of lowering our credit standards to put them in a car, or saying no. And we're telling them no."