US Auto Sales on a Tear$this->bbcode_second_pass_quote('', 'T')he rest of the economy may be stuck in the slow lane, but the auto industry is on a tear.
Auto sales in November continued to strengthen, hitting an annualized rate of 17.1 million vehicles, according to Reuters, which is comparable to the boom year of 2006.
Even better news for the automakers: the average buyer paid about $33,750 for a vehicle in November, the highest average transaction price on record, according to car-research site KBB.com. The biggest beneficiaries are General Motors (GM) and Chrysler (FCAU) which are selling pickup trucks and SUVs as if gas were once again below $3 per gallon. (Wait…. It is!)
American love affair with cars seems to persist, despite many premature reports of its demise. Here are three reasons cars sales have been so strong:
Auto loans are the only kind of credit many people can get.
Gas is cheap.
Cars are old.