If you think about the way cities in North America have developed over the years, the constant for most is you need a vehicle to get around. It is always possible not to have a vehicle, and millions do, but it so much easier if you a vehicle. If you do not have a vehicle, transit is available but often times it is oriented to bringing people downtown and in many cities, to go across town you need to go downtown first. If you have a vehicle, everything is much easier.

In an article by Nathan Gomes and Nora Eckert of Reuters, US auto sales are expected to rise about 6% for the 3rd quarter. The number is surprising strong pace despite tariffs and other uncertainties. This is on top of healthy US sales gains for July to September period, GM and Ford were up to 8% and Toyota was up 14%.

Market research firm Cox Automotive expects US new vehicle sales to be about 4.4 million for July-September compared to 3.9 million in the same period of last year.

Duncan Aldred, President of GM North American business, said consumers seem less concerned about tariffs and potential price hikes than they were a few months ago.

I think stability, clarity and the lack of that massive price rise that people feared is total driving the market.

Demand for mid-size crossovers and pickup trucks has remained strong in September, Cox Auto said in a report. GM is expected to hold on to its top spot during the quarter, followed by Toyota and Ford.

JD Power noted the average retail price for new vehicles in September was expected to touch $45,795 up $1,310 from last year.

On a podcast, Steve Eisman talked with Lakshmi Ganapathi from Unicus Research, said 69% of consumers are paycheck to paycheck with 25% of those using the Buy Now, Pay Later to buy groceries. The problem for consumers is the companies that offer it are using AI to monitor credit habits are lowering credit limits in real time and declining credit. Ms. Ganapathi said, in when payments were received during COVID, government sent money and people’s credit increased, partly because student loans were not being paid. That has changed and student loans need to be repaid. The average car payment is $1,000 a month over an 84-month term. Banks do not want cars so only 30% of cars that could be reposed are reposed, the other 70% are extension loans. People are buying older cars for less than $10,000 but higher maintenance costs come with it. The big companies can produce cars to deliver them to dealers but who is buying?

Recently read a story, those who have over $30 million in assets, are keeping the luxury markets alive and humming.

Linking to dividend paying stocks, the automobile companies used to drive the economy, but the US economy has diversified, however vehicles remain both ingrained in the psyche of the average American and important to the economy. Increasing auto sales is good news, but one has to examine if repossessions are up, because if people fall behind on their payments, the car will be repossessed. Often times, one loves to be optimistic, but wonder why the glass would be half full?

There are more questions than answers, till the next time – to raising questions.