Low Gas Prices Are Helping Truck Sales
As the price of gas declined last year more Americans decided to buy light trucks, according to a report from the National Automobile Dealers Association.
NADA said it expects that 44% of new vehicle buyers will choose cars this year, while 56% will choose to buy light trucks and SUVs.
Lower gas prices have a lot to do with trucks/SUV sale trouncing car sales, but NADA points out that increased job growth and an improving housing market also factor in.
America is feeling more economically confident, and they are up-sizing their vehicles as a result. What will this do to gasoline consumption, which had been stable or declining for years?
If more Americans drive gas-guzzlers, we could see a spike in demand for gasoline. If the increase in consumption is dramatic enough, it could eventually put upward pressure on gas prices. This, in turn, could lead to a decrease in demand for larger vehicles.
Experts say that any big increase in the price of oil is likely months away, since global supply continues to increase even as large economies in Europe and Asia slow down (which should lead to decreasing demand from those areas). For now, at least, it seems that truck buyers will have little to worry about.
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