Two major stories are out about the strengthening of the US economy. Both bode very well for Automobile Manufacturers and Automotive Dealers. The first, located here, talks about the “pent up” demand for new cars. 55% of households plan to buy a new car in the next two years. This confirms what we have thought all along that it is not the weakened economy that has hurt automobile sales, but the FEAR of a weakened economy. Many people are just holding out waiting to see what happens. When all of these buyers jump into dealerships, the incentives will dry up faster than the inventory levels.
The second story, located here, shows a huge jump in consumer confidence. This ties directly to the above article in that it was more of an emotional weakening of the economy, rather than a REAL one. I know that some people have lost their job and I am sensitive to that, but the overall fundamentals of the economy were not as weak as we were told repeatedly ad nausea.
As always, we encourage comments and feedback…
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