Chrysler Uses Cheaper Gas to Rev Up SUV, Trucks Sales

Chris McGrath/Getty Images(NEW YORK) — Plunging gas prices are pushing up sales of SUVs and light trucks.

Chrysler’s November were the strongest results since 2001, with Jeep sales soaring 27 percent and Ram pickups up 21 percent.

Rational or not, many consumers are betting that today’s lower gas costs will be around for a while.

Industry analysts predict that auto sales rose to an annualized rate of more than 17 million in November, the highest number in 13 years.

“In the truck and SUV segments, we still have some pent up demand,” says IHS Automotive Senior Analyst Stephanie Brinley. “We still have a lot of vehicles on the roads that are 11 or 12 years old and people need to get new vehicles.”

Rising consumer confidence is one reason for the sales increase. Low interest rates also make it easy for dealers to offer zero-percent loans.

“Cars have more technology and better features and offer more value than they have in the past and consumers are willing to spend,” says Brinley.


Copyright 2014 ABC News Radio

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