After calling a few local car dealerships, I've found gas prices are no longer affecting their sales. Most dealers I spoke with said truck and SUV sales have been up this year. One dealer said large vehicle sales don't decline until gas prices hit $3 a gallon.
One way rising gas prices have affected dealerships is in the resale value of a vehicle. A sales consultant with Bedford South Point Ford said the value of a truck at an auction or dealing with a trade-in will not be what it was before gas hit close to $4 a gallon last summer.
He pointed out when the value of a truck at an auction is low, it is the best time to buy several because gas prices will go down and the demand for trucks will rise.
He also mentioned many residents along Appalachia use trucks for their lively-hood so the demand will stay steady in this part of the U.S.
A sales and Internet manager for Turnpike Ford of Huntington said when gas prices rise, Turnpike Ford actually has a high number of compact cars sales. Obviously, truck sales decrease for them as well when gas prices rise.
As far as receiving shipments of new cars from dealers, car dealerships don't pay the cost of those shipments. The dealer endures it.
There will be more to come about this story. But as for now, car sales seem to be steady or rising, recession or not!
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If you think about it, West Virginia is mostly rural and there isn't a lot of public transportation. So it isn't too big of a surprise that local car sales are up, otherwise people would have trouble getting to school or work.
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