The Pickup Truck Indicator: Recovery is Real
From CNBC:
Vehicle sales at AutoNation (America's largest auto retailer with 200 locations nationwide) were up by 22% in May compared to last year, but pickup truck sales were up by 50% year-over-year in May. That's a huge sign of strength for American small businesses, according to AutoNation Chairman and CEO Mike Jackson:
"I've always said, when you want to know when this economy is going to turn, just watch the pickup sales. All those sales are small businesses and entrepreneurs, and when they see the prospect for better business, they're going to go out and finally buy a new pickup truck. So this is a key indicator of what's going on in the U.S. economy. This is small business America saying that the worst is over, I see opportunities in the future, I feel confident enough to go out and buy a new truck.
Pickup trucks are bought by small business entrepreneurs who have their finger on the pulse of the U.S. economy. It's an expression of confidence in future of economy. They don't buy until they see the prospects for business are brighter."
HT: Mike LaFaive
6 Comments:
Ford and others are seeing strong pick-up sales year to date. Another strong indicator would probably be vans.
how do they compare to 2007?
also, didn't a lot of dealerships get closed down?
this would improve things for the survivors but not nesc mean the overall pie was that much bigger.
I disagree with this post.
The increase is happening for the exact opposite reason.
I can speak from first hand experience.
Business owners who are still making money have few options for the profits.
They don't want to hire new employees due to the uncertainty of the economy.
They don't want to invest in capital expenditures for the same reason.
It is not worth it to put it in the bank for 1% interest, nor the stock market in volatility.
It is better to spend the money on themselves while they have it and buy a new truck for themselves and take the write off. If the economy gets worse, at least they have a new vehicle that will get them by the rough times. Do it now instead of waiting until you are forced to - you might not have the money then.
Maybe there will be some good used pickups for me.
I'm definitely in the trickle down economy.
They don't want to invest in capital expenditures for the same reason.
...buy a new truck for themselves and take the write off.
If you buy a truck for yourself you don't get the write-off.
If you take the writeoff (anyway) then it is a capital expenditure.
What you say may be partially true, but that many trucks sold has to be more reason than defensive buying.
Besides, who cares? The trucks are selling, and that's a good thing.
I don't know where this guy lives, but up here in rural Western New York, almost everyone has a 4WD pickup. Can you say Buffalo winter?
I'm glad sales are picking up -- I'm not convinced, though, that it's a sign of small-business recovery.
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