■ RICHARD PERRY / Contributed
Greetings from the Hemet Car Guy,
As with everything from the stock market, businesses and the automotive industry it’s had its share of increases, set back and market adjustments in the last 2 years and here is the way I now see it. for example in 2017 the automotive industry had sales of 17.59 million, the highest of the year, and well above forecasts for 17.3 million, but down from 17.9 million in October 2017, when demand soared following Hurricanes Harvey and Irma. October marked the eighth month in 2018 the annualized pace of sales has topped 17 million ( so far November and Decembers numbers are not in)
In 2018 here in the U.S sales have risen 0.5 percent through October. The people who are a lot smarter than me I know analyze all their numbers especially in the new automotive industry had projected second-half to continue to take a little dip in sales.. This was also apparent even in our local used car market here in the San Jacinto Valley. When I’ve spoken with representatives from Wells Fargo, Ally and other lenders they noticed the slowdown beginning in July, with the September decline. The Automotive Industry reported a 5.5 percent the largest decline of the year.
It Appears that the new Auto manufactures will be cutting back cars to increase SUV’s and trucks, because Automotive U.S. and Toyota Motor Corp. posted higher U.S. sales, propelled by increasing truck sales, However General Motors, Ford, Nissan and Honda numbers took a drop back because of the ongoing decline in car demand. So get ready for the small SUV push!
My Realtor tells me home sales have slowed. On the financial news we are told about interest rates are increasing and it affects everything, remember higher interest bring higher payments.
Charlie Chesbrough, senior economist for Cox Automotive said “Many signs in the economy would suggest that vehicle demand should be moderating – higher interest rates, import tariffs, weak housing market, stock market volatility, elevated gas prices – yet vehicle buying remains strong,”
According to President Trump and some data depending on who you listen to we are told the U.S Consumer Sentiment Index, are relatively confident about economic conditions.
Maybe it is a good time to buy a car however; the rising interest rates are a concern and all to better the reason to not actually buy brand new, as I’ve shared in my previous articles I favor 1-3 year old vehicles that have already took their biggest depreciation as much as 50% and still have remaining factory warranty.
Here is why I see the new invasion on the SUVs coming.
Toyota Motor Corp., had a 6.8 percent rise in light-truck volume, reported October sales rose 1.4 percent, with volume up 1.7 percent at the Toyota brand but down 0.8 percent at Lexus. Combined car deliveries at Toyota and Lexus fell 7.2 percent.
U.S. sales at GM, which reports results on a quarterly basis instead of monthly, were forecast by analysts to drop 6.7 percent in October, in part on weaker car demand. The Automotive News Data Center estimates GM’s sales dropped 5.3 percent last month and are off 1.6 percent for the year.
The big winner is Chrysler Corp. ! Their sales rose 9 percent at Jeep, 14 percent at Ram, 38 percent at Dodge and 21 percent at Chrysler. It was the 10th month in a row that Jeep volume advanced year over year!
This is why I see the increase in SUV’s, the numbers don’t lie. The manufactures are listening to the consumers. I see the transition from the sedans, for example: My wife is driving a lease 300series BMW yes its fine for her going to work, however a small SUV with the drop down seats are more practical when she shops at Costco. So I can’t wait till this lease is up. And yes Ill take my own advise and get a 1 year old SUV for her, and she will love it.
Good Driving in the new year