Money Matters: High demand and high prices spur auto industry rebound

Money Matters: High demand and high prices spur auto industry rebound

August was a good month for the auto industry... Make that a great month. According to J.D. Power & Associates, Chevrolet, Ford and Chrysler all experienced over a 12-percent gain from August of 2012.
August was a good month for the auto industry.

"We haven't seen numbers like that since 2006-2007," said Tom Hoeflinger from Landers Dodge. "So it's definately been a rebound."

Make that a great month.

According to J.D. Power & Associates, Chevrolet, Ford and Chrysler all experienced over a 12-percent gain from August of 2012.

"Well there's a couple of things leading up to it," said Hoeflinger, "One, the average age of an automobile right now is over 10 years. That's the oldest it's ever been. So there is some pent up demand right now. The other thing is, I think the economy is coming back."

And while sales are up, so are prices. The average sale price of a vehicle in America was just over $31,200 last month, that's up about $1,000 from the same time last year.

"The vehicles are more expensive but the financing options on them, between leasing and zero percent interest and stuff like that , it makes it affordable so that people can still get into these vehicles," said Hoeflinger.

While sales of sedans are up, it's really the sales of luxury trucks that are helping drive the resurgence.

"The truck today is more than just a work truck. It's a family vehicle," said Hoeflinger. "A lot of people are using them as with dule functions."
 
Higher prices, higher demand. A true indicator on an industry bouncing back.

"We've just enjoyed some real good upswing in the market after 2008, 2009," added Hoeflinger. "It's great to see it rebounding."
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