After a rough winter, last month’s reported auto sales seem to be marking a much-awaited upward trend in the industry. Rough winters across the country are being blamed for the recent sales dip, but the warmer weather raised carmakers’ hopes and expectations. Now the hope is that auto sales will continue to increase as the heat brings people out into the open and onto the dealership lots.
In addition to the increased sales compared to recent months, most automakers are seeing increased sales compared to April of the year earlier. Almost every auto company posted an increased percentage of sales compared to April 2013, with Nissan reaching as high as 18 percent and Chrysler right behind them at a 14 percent increase. If these increases continue in the coming months, the auto industry is on par to reach sales that surpass every other year since 2007. Auto dealers and economists alike are hoping this means the overall economy is flourishing.
As far as actual model sales go, trucks and SUVs, as well as other larger vehicles, are leading the pack in sales. Despite Ford Motor Company’s overall decrease in sales compared to last April, their F-series sales had a 7 percent increase from their already high numbers. Other truck makers recorded sky-high truck sales, including Ram, General Motors, and Toyota.
A variety of speculators have their explanations as to why trucks and SUVs seem to be flying off the lot faster than any other vehicle. Some claim that the exceptionally high sales are due to the bad winters experienced throughout the country. Although the nicer weather is here, people want to secure a vehicle that won’t get stuck in snowdrifts all winter long like their current car did. Others claim that automakers are inflating numbers to make the sales appear better than they actually are. No matter what the reason for the high numbers, economists hope the trend continues.
Even with a trend toward higher auto sales, there seems to be an unfortunate disconnect between the increase in auto sales and the rest of the United States economy. The Commerce Department reported that the GDP for the first quarter only grew .1 percent, a number that ranks very low in performance compared to other quarters in the last five years. We can only hope that the auto industry and its satisfaction in record high sales is a sign for the rest of the economy for the remainder of 2014.
Written by Marc Laferierre, owner of Dents Unlimited. Dents Unlimited offers the best auto repair Columbia MO has to offer, where their expert staff can get your car back on the road in no time.