Many would-be car shoppers stayed home through a stressful election season, says Cox Automotive senior economist Charlie Chesbrough. But, “with the U.S. election now in the rearview mirror, we may see vehicle sales finish the year in a strong position. With less uncertainty in the market, consumer confidence is moving higher, which will likely increase consumer willingness to buy a new vehicle.”
Affordability, Credit Access Improving Chesbrough notes that affordability has improved.
The average earner would now need to work 37.4 weeks to pay off the average new car — the lowest figure that measure has seen in more than three years. Lenders are also approving more car loans, at lower rates, thanks to two recent cuts in the Federal Reserve’s benchmark interest rate.
The average car dealership ended October with an 85-day supply of new cars to sell. That’s higher than the 60 days they traditionally aim to keep. That average, however, is made up of extremes. Seventeen brands had more than 100 days’ worth, topped off by Lincoln with 168. Toyota and its Lexus luxury brand had just 35.
Barron's take, link here:
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