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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsAuto sales are falling, and cars are more expensive than ever
U.S. auto sales are falling as vehicle prices climb, indicating that buyers at the lower end are getting squeezed out of the new-car market, according to a new industry forecast.
First-quarter auto sales are expected to drop by nearly 2.5 percent from a year earlier, to 4 million units, according to J.D. Power and LMC Automotive.
Retail sales, which exclude sales to rental car companies and other commercial businesses, are expected to drop by about 5 percent to 2.9 million units. It's the first time first-quarter retail sales are projected to fall short of 3 million units in six years, said Thomas King, senior vice president of J.D. Power's data and analytics division.
It's more evidence that vehicle sales in the world's second-largest auto market are sliding from the record levels they had achieved in the years following the financial crisis.
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The average price of a new vehicle is expected to hit $33,319, the highest ever for the first quarter. The average buyer is paying $1,000 more per purchase than in the first quarter of 2018.
https://www.msn.com/en-us/money/companies/auto-sales-are-falling-and-cars-are-more-expensive-than-ever/ar-BBVfeUk?li=BBnbfcN
I'm sure Trumpy's tariffs don't help.
sakabatou
(42,180 posts)kimbutgar
(21,215 posts)From my families income! I was gonna put it off another year but wanted to buy before our great President Obama left office. We call it our last Obama era car.
SoCalNative
(4,613 posts)start stretching auto loans for a couple of years longer, to make the cars seem more affordable. Before you know it, it will take as long to pay off a car note as it does a mortgage.
JCMach1
(27,575 posts)customerserviceguy
(25,183 posts)Most of the US nameplate autos can barely last through their financing period as it is. The solution is to push leases, then a car only has to last for a bit more than three years.
Glad to have my Korean-built 2012 Hyundai Sonata Hybrid, all paid off over a year ago. Less than 80K miles, and I should be able to get 300K from it. With my being retired, it just might be the last car I ever buy.
Ilsa
(61,700 posts)if taxpayers are maxed out on deductions. It's a minor point in affordability.