How the Texas car market is trending after the oil spill
Car sales are surging in Texas after the spill, and the state is seeing new demand from car buyers who aren’t as comfortable buying luxury vehicles.
Texas, the state with the nation’s second-largest oil spill, saw an increase of 1.8% in car sales after the end of the fiscal year in September, according to data from the Texas Association of Realtors.
Texas also added 2.4% more luxury cars than it had at the end-of-year.
But as the recession has hit Texas hard, car sales in Texas are still down.
“The numbers don’t look very good for Texas right now,” said Bill Bowers, president of Bowers Real Estate.
Bowers and his wife, who owns a house in Austin, are now considering buying a new car, Bowers said.
He is planning on spending more than $400,000 on the car.
The average price for a new 2018 Toyota Camry, a luxury vehicle with a base price of $63,900, is $49,900.
In Austin, Bower said he would need about $50,000 to get the car out of the driveway.
He said he also is considering buying another car in Texas that would have a similar price tag, like a BMW or Mercedes.
But the cost of a new Mercedes, for instance, would be $68,500, according the Texas association.
“I think it’s going to be a little bit expensive to get that out of my garage, but if I have the money, I can afford it,” Bowers added.
For Bowers’ wife, she said she would like to get into the luxury car market and will be shopping around for a 2018 Nissan Altima that is $72,500.
Bower added that he hopes that with the recession slowing down and interest rates low, people will start to take their money elsewhere.
“If I get into a car dealership and they don’t have the cash flow, they’ll just go to another dealership,” Bower explained.
“They’re going to go to a dealer that’s going higher than them.
They’re going up in price, they’re not going to take a loan, they won’t pay down the loan, and they’ll be sitting on the balance of their mortgage.”
He added that in the short term, he expects Texas to see more cars being sold.
“We’re going through a period where I think we’re going toward the end for a lot of people.
If the economy picks up and people feel comfortable with their cars, I think that we’re headed in that direction,” Bows said.
The recession in Texas was also a factor, he added.
“That was an important factor for the sales,” Boes said.
But with the economy slowing, Boes also expects to see sales in the future increase.
“There are going to continue to be buyers for luxury cars, but I think they’re going into the market that’s more for people who want a car with a lot more features and the best driving experience,” Bores said.
As of the end to September, Texas had about 7,300 luxury car sales according to the Texas Auto Dealers Association.
While the number of luxury car dealerships is expected to drop to about 3,600 this year, Bests said the industry has grown from its peak before the recession.
“In the past, we would have had over 400 dealerships, but that’s not the case anymore,” Betts said.
Boes added that the number is still a bit higher than the peak of about 1,800 dealerships during the recession in 2010.
The Texas association predicts the luxury market will continue to grow.
“People are still going to drive more luxury vehicles in the long run, but it will be more for the higher end of that market, especially with the new technology that comes out of Toyota,” Bains said.