Connect with us

Hi, what are you looking for?

Economy News

U.S. Car Sales Fall Below Pre-Covid Numbers

Even with the growth of inflation numbers dropping, auto industry analyst say the price a new vehicle is still too high and borrowing cost are holding back potential car buyers.

“What is expected to be another lackluster sales year for automakers, industry forecasters expect third-quarter U.S. vehicle sales to come in roughly flat compared with a year earlier,” said the Wall Street Journal.

Car loans are also a contributor to the slow down. For a new car, the loan is at 6.84%. Florida is higher with the average loan rate at 7.7% according to car industry online publication Edmund’s. For used cars, it’s worse, hovering around 12%.

Several automakers are seeing a decline in sales. General Motors reports their sales are down and Toyota Motor’s U.S. sales also fell.

In 2019, the average vehicle was around $34,600, but according to car data analytics company J.D. Power, the average number currently is $44,467. Compared to last year, prices have slightly decline by around 3%, but J.D. Power says not even discounts offered by car dealers are helping to bring in customers.

“This market is still pretty unaffordable,” says Edmunds’ Jessica Caldwell. “Those prices present plenty of sticker shock for consumers who might be returning to the dealership for the first time in five or six years.”

On the horizon, there may be some breathing room for those looking to purchase a car if the Federal Reserve decides to cut the interest rates further. However, J.D. Power isn’t sure if another cut may help. They said new finance payments for a car, on average, is around $734 a month, which has increased from 2023.

In 2021 and 2022, there were consumers who were paying around a $1,000 per month for a new vehicle.

Marketing company Cox Automotive said they see more car consumers leasing vehicles. “Leases accounted for 25% of new-car sales in the third quarter, up from 20% a year earlier,” said Cox.

Cox also said people are buying smaller cars and SUVs. That number is higher than last year. The sales of midsize vehicles, trucks and larger SUVs have declined.

Author

Share Story Via Text, E-Mail, Facebook or Twitter

Follow Us on Social Media

Archives

Related Stories

Economy News

A central Florida mall that has been struggling to survive is now on the market. According to a report in Orlando Business Journal, Fashion...

Economy News

Interest in Home Equity Lone of Credit (HELOC) loan rates appears to be at a record-high in America. A recent report from Mortgage broker...

Election News

The Republican State Leadership Committee (RSLC) sent a memo showing the financial disparity between the GOP and Democrats in state legislative races.“While we increased...

Political News

For the past three years, Gallup has surveyed voters’ opinions from the media, and once again they’re giving major news corporations a thumbs down.The...

Political News

The discussion of lessening the tax burden on hair stylists, barbers, and nail technicians in the state is one being proposed by groups like...

Environment

The Florida First Energy Alliance (FFEA), a coalition of leaders across the Sunshine State, announces its launch with a mission to promote energy, climate,...

Election News

With only 21 days remaining until Election Day, both presidential candidates have largely avoided discussing education and school choice.“It’s an issue I wish we...

Political News

The American Enterprise Institute (AEI) analyzed Vice President Kamala Harris‘s proposed housing plan and calculated the total cost to American taxpayers.To appeal to Americans...