February Light Vehicle Sales
Nationally, February light vehicle sales were down .6% compared to 2006. The February snow, ice and colder-than-average temperatures in the
Market segments enjoying increased sales in February include Crossover Utility Vehicles (CUVs), up 14.1%; small cars, up 2.8%; and pick-up trucks, up 2.2%.
Gasoline Prices
Gasoline prices should moderate as the winter heating season ends. Then, expect the typical gradual gas price increase over the summer driving season, although prices are not expected to exceed $2.80 per gallon at its peak. This should provide a better outlook for consumers who saw prices over $3.00 per gallon in 2006 and worried that prices would climb to as high as $4 or $5 per gallon.
The fall of gasoline prices in 2006 helped increase the value of used trucks, SUVs and large sedans in the used vehicle market, helping trade-in values and strengthening overall average used vehicle prices.
The Economy Ahead
A continued correction in the stock market will tend to moderate luxury vehicle sales, but renewed stock price appreciation should help sales. Luxury car sales are down 2.8% year-to-date compared to the same period in 2006.