Friday, November 19, 2010

Broader space between vehicle and truck income

The gap in between automobile income and pickup truck income got broader in October. This space between the number of pickup trucks purchased and number of automobiles purchased is shocking. It would make sense that in a lower economy, people would buy cheaper vehicles with great mileage. trucks actually outsold cars significantly.

Trucks selling more than cars

Auto sales in Oct were really great. The month had gains posted for almost all auto makers. Toyota on the other hand, as a result of lawsuits and recalls losing respect from the public, reports losses. In fact, 54 percent of new auto sales were trucks remarkably. USA Today reports this. If you purchased a new pickup from Ford, there was zero-percent financing on auto loans while if you purchased a Dodge Ram pickup you can get the "60-Day-Handshake" which meant you could return the truck in 60 days if you didn't like it. These incentives probably helped a lot. The figure includes pickups, but additionally vehicles that technically use a “truck” chassis. SUV's, minivans and other vehicles were within the figure too.

Gas prices not a factor

Most are aware of fuel consumption. This is especially true of modern car buyers. Small cars and hybrid sales are increasing though. The sale of full size pickups hasn't stopped though. Gas is now more expensive (around $2.80 per gallon) than it was at the height of the truck and SUV craze (less than $2 per gallon). Because of auto credit being damaged, many companies weren't able to replace older work trucks and vans which is why the majority of the purchases were for work autos.

Increasingly more trucks

Trucks are the bread and butter of domestic automakers. The F 150 which will debut with a turbo-charged V6 soon is the best selling pickup within the truck and is made by Ford. Don't forget that Chevrolet, GMC and Dodge all sell a lot too.

Articles cited

USA Today

content.usatoday.com/communities/driveon/post/2010/11/trucks-outsell-cars-by-widest-margin-in-five-years/1



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