Automakers reported US October sales on Tuesday, and sales were good.
Actually, scratch that — they were insanely great.
Nearly every major automaker reported sales that exceeded analysts expectations. The US market is now running at or near a feverish 18-million annual sales pace.
If 2015 closes with 18 million new cars and trucks sold, it will beat the best year on record: 2000, which came in at 17.4 million.
So what’s driving this torrid sales pace?
Simple: The cars currently on the road are old.
The average age of a vehicle in the current fleet is roughly 11 years. That’s ridiculous by American standards.
American just don’t drive old cars. Unless a massive recession destroys their access to credit and takes away their jobs. In which case they drive their cars until the wheels come off.
Well, the wheels are coming off a lot of cars. That’s why as the economy recovers, Americans are buying, and buying, and buying some more.
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