US Truck Sales Surpass Passenger Car Sales for the First Time
If you’ve been monitoring U.S. vehicle sales trends the past couple of years, you’re likely aware that SUV and truck sales have been gradually increasing while passenger car sales have decreased. Now, American truck sales have officially surpassed passenger car sales for the first time in history, according to new research from Autodata Corporation.
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Per Bloomberg, customers bought 17,000 more pickup trucks than passenger cars during April. This would’ve been hard to imagine five years ago when passenger car sales beat pickup sales by more than half a million units in one month. In particular, full-size truck models are thriving. They comprised more than 40 percent of GM, Fiat Chrysler, and Ford sales last month.
Potential reasons for the truck sales surge
A few key factors that have contributed to the booming surge of pickup truck sales: zero-percent financing offers, low gas prices, and the timing of coronavirus-related shutdowns across America. Some dealerships have been offering zero-percent financing offers with seven-year loan terms. “Even in a pandemic, there are some offers too good to pass up,” Cox Automotive’s senior economist Charlie Chesbrough articulated.
With the current trend of low gas prices, consumers can bring home larger vehicles without caring as much about mileage. The fact that states in the middle of the U.S. implemented stay-at-home orders later than coastal states also helped truck sales peak. That’s especially true with Midwest-based automakers like GM.
Predicting the future of truck sales
Truck sales are doing so well here in America that, if this trend continues, some automakers might have a significant shortage of truck models. Production plants shut down back in March due to the pandemic. So, there’s a lack of supply which contrasts with the surge in demand.
Yet, if manufacturers are able to start up vehicle production in the near future, perhaps it’ll be an opportunity of economic growth. It could be the jumpstart that the auto industry needs in the wake of pandemic-related financial challenges.
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Whitney Russell is a current resident of Dayton, though her spirit can be found beach-bumming in Puerto Rico (the land of her half-Puerto Rican heritage). When not adventuring through the exciting world of car news, she can be found hiking with her husband and their two dogs, visiting nephews and nieces, discovering new memes, thrifting, decorating, crafting, woodburning, researching random things, and escaping into a great movie. See more articles by Whitney.