What's Fueling the Demand for U.S. Autos?

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July 2 (Bloomberg) -- Edmunds.com's Jessica Caldwell discusses why U.S. auto sales are making a comeback with Mark Crumpton on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Thanks for having me back.

We have had volatility in the stock market, higher taxes, and fluctuating gas prices.

You would think that would be enough.

Are the automakers using a different strategy or do the consumers believe the economy is getting better?

People believe the economy is getting better in tandem with the fact that people need to buy cars.

You look at the cars coming in and they are significantly older.

These could be people that really cannot wait any longer to buy a car.

With interest rates low and automakers subsidizing the interest rates, you get a monthly payment affordable for a lot of people.

What is the average age for an auto in the u.s.? folks have been holding onto them for a while because they are scared of job prospects.

That is true.

If you look at how old vehicles being traded in for new cars, it is just about six years.

If you look at the average age of cars on the road, it is higher.

Cars are getting older and they do not last forever.

People have to come back whether they like it or not.

Pickup trucks have been selling at a rate three times faster than the rest of the auto industry.

Ford just sold 68,000 f series trucks, up 24% from last june.

Sales of gm jumped 29%. what is fueling the demand?

We are seeing the release of demand for truck divers because they have been a group notoriously timid about buying cars since 2008. if you look at the market share, it has been very depressed.

Right now, it looks like a lot of those those buyers are coming back into the market, and truck s are much higher.

We are seeing the beginning of that market coming back.

How will the big three make half it on more than just a cup gekko class they are selling a lot of everything.

You mentioned so brought a deaf series.

Both ford and chevrolet are selling to smaller cars, as well.

Cars are getting more expensive.

There is more content.

The fact that trucks are doing well is certainly helping profit.

That is not the only thing driving rockets up.

Do you have any idea what the demographic looks like gecko our young people visiting showrooms?

Is there credit ok now?

They want to buy new cars but a lot of financial system may -- situations do not allow them to.

If you look at the breakdown of who is buying cars, too much on the underside.

The age group , under 35, still has not fully recovered from the recession.

Overtimes, they probably will.

They simply cannot afford them right now.

Japanese automakers also reported solid figures.

Where is the strength coming from?

A lot of those strengths are coming from new products.

They do historically very well.

The honda accord is one of the best-selling cars in the country.

They are relatively new.

They have a lot of loyal buyers coming back into the marketplace.

To uc anything right now that could slow the sales momentum of the first six months?

Are the numbers we saw today sustainable?

I think they are sustainable.

I do not think they are necessarily going to move upwards in a linear direction.

There will be ups and downs.

People are still somewhat sensitive.

June is not one of the strongest months of the year.

It allows us to get to a high, seasonally adjusted number.

That is one thing.

If you look at the number of vehicle sales, it is slightly down from may, which is stronger.

This text has been automatically generated. It may not be 100% accurate.


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