By Oregon Small Business Association Foundation,
Nationally, car sales have hit 17.8 million which is a 10 year high and rebound from the Great Recession drop. We asked Jose Mesa, a 25 year veteran of car sales and owner of Jose Mesa Wholesale LLC, to provide his local take on the car sales rebound as well as gas prices and stock prices impacts.
Is Oregon experiencing the car sales rebound witnessed in the nation?
Jose Mesa: Auto sales have done very well here. Oregonians like their bikes but they also like their cars too! This will never change. There are many things to do and we need that vehicle to get us there. With that said many Oregonians do like a vehicle that is somewhat versatile to allow for all the things we like to do around here. Smaller sport utility vehicles (SUV) are very popular here. Since businesses are also doing well there are many commercial vehicles that have been sold this year. Commercial vehicles will always be needed for many companies so automakers can always expect the sales of these vehicles to businesses.
Do you see the recent stock market gyrations have an impact people’s decisions?
Jose Mesa:The stock market has taken a little dip but you have to understand that people have also taken profits during that time so since they have a little money available then they are spending some of it on new vehicle purchases. The stock market gyrations don’t seem to impact the younger people as much as it may with the older people.
What has changed in the past 10 years?
Jose Mesa: During the last ten years we have seen not only vehicle pricing increase but also MPG ratings. Car profits from wholesale to retail have decreased which means less of a discount. Cars are coming equipped with Bluetooth and back up cameras for safety. The prices for navigation systems have come done a fair amount which makes it more affordable.
Does low gas prices impact buying habits?
Low gas prices always provides a little relief at the pump. Regardless if you have a vehicle that gets 15 MPG or 45 MPG these people enjoy the savings. Low fuel prices does get people back into buying those big vehicles that don’t always get the best fuel economy such as big trucks and SUVS. What is interesting is that the price of diesel has come down below the price of unleaded. For many years it was the opposite. Many people have noticed and diesel vehicles have been extremely popular. As fuel prices continue to come down as they say they will continue to do you will find more people getting out there and buying a vehicle.
Disclaimer: Articles featured on Oregon Report are the creation, responsibility and opinion of the authoring individual or organization which is featured at the top of every article.