Car Sales Keep Up Their Streak

Automakers are reporting sales of record high since 2007, March sales of new cars were at its highest in five years. The recent improvement in the economy and housing market has spurred customer’s interest in new cars and trucks. Full size pick up truck’s demands soared as the housing market is continually doing well and the improving economy is restoring confidence in peoples purchasing confidence.  Lacey Plache, an economist says that the “wealth effect” is making Americans feel more comfortable with buying new cars.  Not only is the American economy improving, Japanese automakers are also doing well since the recent earthquake and tsunami. The natural disasters caused a lot of damage to Japanese automakers but the companies like Toyota and Honda are making turnarounds from inventory problems. They are introducing new models and updating showrooms more often to attract new customers.

The car industry is a good indicator of our recovering economy. With confidence restored, consumers are more willing to spend money on wants such as cars and houses. The money that is spent is used to stimulate the economy even further improving the market a little more each time. I’m glad the economy is showing signs of recovery because as a college student, I hope I can graduate with little difficulty in landing a job.

Written by: Wilson Tang

Source:

http://www.nytimes.com/2013/04/03/business/car-sales-keep-up-their-streak.html?ref=business&_r=0

 

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