The housing recovery has car buyers heading to auto finance companies for new trucks.
According to officials at General Motors and Ford, the start of the housing recovery has increased pickup truck sales and will continue to do so. On average, industry-wide, pickup sales increased 16 percent in August on a month-over-month comparison.
“We believe that the recovery in the housing sector does play a role in continuing to support our full size pickup sales,” Jenny Lin, economist, told The Street. “We are going into the high season for the truck sales, (which) will support continued strength in full-size pickup sales.”
Kurt McNeil, GM U.S. vice president for sales operations, said that GM’s total truck sales increased to 10.9 percent in August, up from 10.4 percent in July. He added that truck sales are expected to continue to increase as much as 12 percent by the end of the year.
Truck sales normally correspond with the state of the housing market, partly because workers within the housing industry, like contractors and roofers, need trucks to build houses. An improved housing market also stimulates the overall economy, putting more money in peoples pockets or allowing them to obtain auto loans, to buy things like trucks.
via Auto Finance News.