Tags: Ford | gas | F-150 | price

Ford Could Be Big Winner From Oil Price Collapse

By    |   Wednesday, 31 Dec 2014 07:44 AM

Gasoline prices have a large impact on consumer behavior. Thousands of gas stations around the country post the price in large numbers, and many consumers track the changes daily.

Falling prices can boost consumer confidence and lead to an increase in retail sales. Consumers might also be more likely to buy big-ticket items as they see their discretionary income increase with falling gas prices.

Cars and trucks are big-ticket items that are also impacted by sentiment. When consumers feel good about the economy and have some optimism that gas prices will remain low, they might splurge on less economic vehicles.

Sales of hybrids and electric cars increase when the price of gas rises, and sales of light trucks and SUVs increase when gas prices fall.

Ford F-Series trucks have the largest market share of any pickup truck in America, accounting for more than 30 percent of sales in 2014. Lower gas prices could make these vehicles even more appealing to drivers, since Ford's pickup trucks average just 16 miles per gallon.

Improvements in the employment market will also help Ford. F-150s are expensive, with prices of the most expensive models topping $50,000. Low unemployment and low gas prices point to potential gains in F-150 sales and in Ford's stock price.

In the late 1990s, oil prices fell almost 60 percent and Ford's stock was a market leader, gaining more than 300 percent. With similar economic indicators being seen today, Ford could be a stock market leader in 2015.

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MichaelCarr
Gasoline prices have a large impact on consumer behavior. Thousands of gas stations around the country post the price in large numbers, and many consumers track the changes daily.
Ford, gas, F-150, price
248
2014-44-31
Wednesday, 31 Dec 2014 07:44 AM
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