Auto Sales on the Up and Up in 2016
What’s Driving the Surge of Auto Sales?
Everyone in the auto industry is rejoicing this month. It’s not even the end of the first quarter of 2016 and all signs are pointing to success for auto dealers and manufacturers. Local dealerships across the United States are reporting as much as a 20% increase in February over 2015, with no sign of a slow down. It’s the highest February volume in auto sales since 2001!
As a key support driver for the auto industry (we ship your vehicles!) we want to celebrate with you. We like to think of ourselves as the dealer’s advocate, creating more opportunities for your online sales through offering affordable car shipping services.
We’re no economists, but we’d like to weigh in and offer some thoughts on what’s driving this surge of car buying.
LOW GAS PRICES
What’s the first thing Americans do when gas prices go up? They don’t drive, they take the bus, or they sell their large gas guzzling SUV for a small sedan.
As of the end of February, the average price for a gallon of regular gasoline across the U.S. was $1.72, for diesel it was just under $2. For regular gas, that’s down nearly $0.70 from a year ago and it’s almost a full dollar less for diesel.
All of that seriously adds up at the pump. All of the events that rely on gas – road trips, weekend getaways, driving across town to visit a favorite store or a friend – now don’t take a second thought. Cheap gas = drive all you want!
LOW INTEREST RATE
When you buy a new car, it’s rare to pay in cash. Buyers need a loan and they’re getting smarter. They don’t want a 6% interest rate. Right now, credit rates are low and money is easy to get. When you can get approved this easily, why not buy a car?
RISE IN DEMAND
Demand seems to have increased. Low fuel prices contribute to a greater demand for larger vehicles like pickups and SUVs. People who may have been waiting for the “right time” to get that sports utility truck now feel justified in doing so! Our services for Texas car shipping have spiked in 2016, and many of these vehicles were assembled at the GM Plant in Arlington, TX or the Toyota Plant in San Antonio, TX. Demand isn’t isolated to just one brand, either. Ford, Nissan, Honda, and Fiat Chrysler are all reporting major increases.
After an exceptional 2015, we hope the streak keeps going!
We are the car dealer’s advocate offering affordable vehicle shipping for your inventory. Get a FREE quote today for your auto dealership.