Second Quarter US New Vehicle Sales Struggle Amidst High Prices
Money | July 3, 2024, 6:14 a.m.
Despite larger discounts and slightly lower prices, U.S. new-vehicle sales only increased by 0.1% in the second quarter. Auto industry analysts predict further price drops and potential interest-rate cuts to make taking out a loan for a new vehicle more affordable, hinting at brisker sales in the future. Delays in June due to cyberattacks on software led to some deliveries being pushed into the third quarter. Despite a decrease in overall vehicle prices, the average selling price remains high. An increase in sales of gas-electric hybrids and more affordable vehicles like the Chevrolet Trax suggests that customers are increasingly seeking lower-priced options. The industry may need to add discounts to keep prices down, potentially impacting Detroit automakers who have shifted away from lower-priced vehicle markets. Increased supplies of vehicles could lead to more attractive price points and lighter inventory levels in the future.