Pickup truck, SUV sales in Hamilton County set new December record

Buyers drove new pickup trucks and sport utility vehicles off Hamilton County lots in record numbers for December as they tapped into low fuel prices and high dealer incentives.

Dealerships sold 715 trucks and SUVs, the most ever for the month in the county, even as overall car and truck sales here in all of 2016 were slightly below 2015, figures show.

"It doesn't surprise me at all," said Richard Maddox, general sales manager for Infiniti of Chattanooga, about the December truck and SUV record. "Fuel prices are important."

The current average for regular unleaded gasoline in Chattanooga on Thursday was $2.09 a gallon. While that's up from $1.68 a year ago, the current level is nearly half what it was in 2008, according to AAA.

In Hamilton County in all of 2016, trucks accounted for more than 59 percent of all vehicles sold. Trucks and SUVs outsold cars by 7,684 to 5,271. That margin, 2,413, is 12.7 percent above 2015.

Maddox said families are looking for more flexible vehicles and SUVs offer those features with their size and luggage compartments. Double-cab trucks also provide many of those features and are a popular option, he said.

Cedric Elliott, Capital Toyota's sales manager, said the Lee Highway dealership sold out of its Highlander midsize SUV last month.

"Normally we're low on trucks and SUVs," he said. "We had some Highlanders and 4Runners and Toyota put in some good incentives."

While total truck and SUV sales in the county hit nearly 7,700 units last year, that's below the high mark of 9,156 in 2004, according to the Hamilton County Clerk's Office.

Michael Harley, an analyst for Kelley Blue Book, said that aggressive late-year incentives, easy credit, relatively inexpensive fuel, and a consumer passion for pickups, SUVs, and crossovers helped fuel a record year nationally for new vehicle sales.

Research firm AutoData said U.S. sales countrywide hit an all-time high of 17.55 million vehicles in 2016.

But Harley said 2017 may not turn out as well as last year.

"Enjoy the celebration today, as this is likely the apogee of the industry's climb," he said.

Auto experts have cited over-incentivizing by automakers, higher interest rates and other factors as creating a potential headwind to new vehicle sales in 2017.

But Maddox said Infiniti recently released its new QX30 compact SUV and inventory of that vehicle is showing up at the dealership.

Also, a Q60 coupe with three different engine configurations is set for 2017, he said.

"We've got other things working as far as the model lineup," he said, adding that Infiniti sales nationally were a record for December. "We're pretty optimistic about the future."

Elliott said Capital Toyota has a goal of doubling its sales in 2017. He cited Toyota product and the recently completed remodel of the dealership.

If gas stays under $2.50 a gallon, he predicted strong SUV and truck sales again.

While auto sales nationally hit a new record, Hamilton County's total of just under 13,000 was essentially flat from the year before when 13,020 were sold, according to figures from the Clerk's Office.

Also, while new vehicle sales in the county last year were up 18 percent over five years ago, last year's mark is way below the all-time record. New vehicle sales reached a peak in 1977 in Hamilton County at 19,327 vehicles.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.