Dealers report elevated prices, a lack of affordable vehicle models, and higher interest rates are pricing many consumers out of new cars.
Interest rates will continue climb, eating into inventory improvements’ effect.
Cox’s Auto Market Weekly Summary for January 13 shared both positives and negatives.
Auto industry analysts remain on high alert for “demand destruction” as high interest rates, escalating vehicle costs, and a down economy threaten auto sales.
Sales of new automobiles plunged to under 14 million vehicles in 2022, the lowest since 2011, reports Kelley Blue Book.
Economic pressures expected to make 2023 even more challenging.
Report shows interest rates, continued high prices cramping volume.
APR for new cars hits 3-year-plus high.
In a down economy, industry experts recommend dealerships offer a range of finance and vehicle options to address budgetary concerns.
The average interest rate paid on a new vehicle purchase hit 5.7% in September, up from about 4% in 2021.
