Posted 1/3/2024, 11:00:00 AM
US Auto Sales Slow in Late 2022 on High Prices and Interest Rates, Dampening Future Growth
- US auto sales softened late 2022 due to higher financing costs and near-record car prices
- Pent-up pandemic demand has been satisfied; shoppers balking at 10% interest loans and $48K average prices
- December sales likely fell to 15.4 million annual rate, down from 15.5 million prior quarters
- Affordability issues reduced buyers, with new cars going almost exclusively to top 20% income households
- Sales expected to rise less than 2% in 2024 to around 16 million, far below pre-pandemic 17 million peak