Give Thanks! Sales Down Only 28 Percent In November
This is what passes for good news these days, so pass the turkey and keep smiling. Edmunds (via Dow Jones Newswires) estimates that the American new car market is down 28 percent in November, but up 1.9 percent from October. “Sales improved slightly over October thanks to near record high incentives and perhaps a sense of relief that the presidential election is over,” said Edmunds’ executive director of industry analysis, Jesse Toprak. Many analysts had forseen a bloodbath in November, after a disastrous October. In November’s 25 selling days, Chrysler LLC’s sales are seen dropping 42%, with Ford posting a 33% slide and GM reporting a 28% skid. And it’s not just Detroit firms losing ground. Toyota sales are expected to drop 24%, with Honda sales down 21% and Nissan sliding 29% on the month. Detroit’s market share is estimated to be 47% in November, down from 51% a year earlier and flat from October. These numbers could easily have been much, much worse given the record low consumer confidence. But is cheap gas helping, and if so, how long will it last? Stay tuned, as we get official numbers out at the end of the month.
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Two days ago, my local Chevron was offering regular at 1.99. I have not seen that low of a price (at a California Chevron) in years. Traffic on US-50 and I-80 is averaging 75+ again whereas during the summer everyone seemed to stay under 70, especially trucks and SUVs who seemed to linger longer in the slow lanes. An uncle bought a used 2006 A6 and another got rid of his diesel pusher for a new diesel F-350 and 5th wheel. The latter owns a manufacturing company (in California even. Yes, we make stuff.) and is replacing his medium-duty delivery trucks. He still makes gobs of cash in this economy. The point is, there are still those who can afford to take a risk on a truck or SUV even when gas prices are bound to rebound. Especially business owners who can write off their trucks and I think we're seeing people who waited for this downturn to pick up vehicles on the (relative) cheap.
Gas is as cheap as $1.49 here. My impression is that I'm seeing more vehicles with the temporary cardboard tags that the dealers put on upon delivery.
I was at a Mazda dealership late this afternoon in Nashville with my son while he dropped his car off for service and was surprised at all on the activity in the showroom. There were several customers with salespeople and many test rides going on. Hopefully that is a sign that things maybe picking up for the industry.