McLEAN, Va. -

Dealers may see an influx of customers as falling gas prices allow consumers to spend more on what they drive and less while filling their vehicles’ tanks, the National Automobile Dealers Association’s top economist reported late last week.

Dealers have been digesting reports of supply shortages and high gas prices hurting the economy for months now, so this good news should be welcome.

According to NADA chief economist Paul Taylor, falling gasoline prices over the summer months will provide car shoppers with more spendable income.

Consequently, consumers will have more confidence to buy an automobile that best meets their household needs, he continued.

“Lower gasoline prices, wider availability of credit and new-car inventory rebuilding in July will result in a new-vehicle sales increase during the second half of the year as consumers replace many record-old vehicles currently on the road,” Taylor said.

“The drop in gasoline prices will help avoid a summer run on small cars and hybrids, both in short supply in the current market, as well as lead to increased sales of larger cars and light trucks. There are just 10 days of supply of the Toyota Prius hybrid and a 30 day supply of all small cars,” he continued, touching on the current supply-shortage issues.

Additionally, with the overall shortage of new-car inventory, demand has increased during the months of May and June.

This pent up demand will “boost auto sales” over the late summer and into the fall selling season, Taylor concluded.