Gas Prices Rise, Will Strong Auto Sales Continue?

We reported previously that sales numbers for 2014 ended up breaking records, however that was then. How are things going now in 2015? According to reports, 2015 is starting off very much like the previous year ended. The big three domestic automakers reported particularly strong sales figures. Looking at year-over-year totals GM’s sales rose 18 percent, Ford saw its numbers increase 15 percent and Fiat Chrysler jumped by 14 percent compared with 2013.

One of the real big winners was Subaru, posting a 24 percent year-over-year increase in sales. Toyota saw an increase of 16 percent from 2013, while Nissan saw an uptick of 15 percent and Honda saw a positive of 11.5 percent over last year. The 15 percent increase for Nissan was the highest in company history. One reason for the increase in sales numbers might be the continual tumble of gas prices in the United States. The national average cost for a gallon for a gallon of gas had fallen for 123 straight weeks until finally going up last week. However, the United States national average is still around $2.05. Consumers are likely using some of the money that they are saving on their gas bill on a new vehicle purchase.

According to a report from Jessica Caldwell, Senior Analyst at Edmunds, the vehicles that tend to be the least MPG friendly are selling well. In a statement, Caldwell said, “Pick-up trucks are showing among the biggest sales gains this month. Pick-up truck prices have skyrocketed 41 percent in the past decade, while SUVs have only risen about nine percent. In 2004, trucks and SUVs cost about the same price, but now trucks are $8,000 more expensive, on average.” January, a month that can be slower with tax time looming and holiday deals over, is looking like it will be the best for retail auto sales in nine years. These strong numbers also all occurred despite some intense winter weather across much of the midwest and east coast of the U.S.

Did you see an uptick in sales during January at your store? Do you think that 2015 could be even better than 2014? How much will increasing gas prices impact retail automotive moving forward?