Confidence in housing market contributes to rise in truck sales

September 5, 2012 12:00 AM

The auto industry saw an increase in demand for full-size pickup trucks in August, marking the highest sales watermark since 2009, according to Autodata statistics reviewed by The Associated Press. The news source notes that the increase in truck sales may be an indication of a stronger housing market.

"Businesses don't usually go buy a fleet of trucks unless they have good reason to believe that business will be ramping up," Jesse Toprak, vice president of market intelligence for TrueCar.com, told The AP.

Home prices in the United States increased 3.8 percent from July 2011 to July 2012. This was the largest increase in six years. Furthermore, the National Association of Home Builders released new data that indicates new single-family home building projects are steadily increasing. This is giving contractors the confidence they need to walk into a dealership and make a purchase.

The Detroit Big Three - Ford, GM and Chrysler - saw double-digit sales increases last month, according to The AP. As buyers gain confidence in the housing markets' recovery, they are gaining confidence to replace older vehicles that may require more auto repair with new trucks.

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