qr-play-store play store

Auto Dealers Fear That Good Times Are Over As Interest Rates Rise

11 Jun 2018
No comments
289 views
Auto Dealers Fear That Good Times Are Over As Interest Rates Rise

For car dealers, a sunny sales outlook at the start of 2018 has been overshadowed by rising interest rates, shrinking customer budgets and cost increases. Their optimism for the next quarter lost 14 points to just 56 on a 100-point scale, according to the Cox Automotive Dealer Sentiment Index.

 

 

The report, based on a survey of more than 1,000 independent and franchise car dealers from April 30 to May 14, shows prospective buyers grappling with tight finances despite a Republican tax cut that many sales executives had expected to boost consumer spending. The biggest challenges they reported were overall auto market conditions, followed by limited inventory, buyers’ ability to obtain credit, and rising interest rates.

 

 

While higher rates and lack of credit affect demand, supply costs are also poised to grow. Trade groups that represent the auto industry have warned that tariffs on automobiles and parts, combine with duties imposed on steel and aluminum, are likely to hurt American businesses and curb the benefits of the 2017 tax cuts.

0 0
Comments:
No comments found
Leave a comment
  • Jaw-dropping deals this Spring at RepoKar
    27 Feb 2017

    Spring is right around the corner! With melting snow comes rising car sales. Longer days and brighter sunlight mean it’s the season to think about the best used cars for spring; vehicles that allow you to appreciate blue skies, while getting a head start to summer. The sooner you decide on your dream car, the greater the possibility of finding the best deals.  At RepoKar, we want to be sure that you've got everything you need to start the season fresh with a smile on your face. That’s why we’ve prepared amazing, hassle free used cars, trucks, and SUVs for our fr...

    0 2
    15
    1025762 views
  • General Motors to lay off 1,100 workers
    06 Mar 2017

    General Motors promised us other things but that’s how it all turned to be, even if it said it will invest $1 billion in U.S. factories now it announced to temporarily cut off 1,100 workers in May as its Lansing Delta Township assembly plant in Michigan shifts production to Tennessee. Last year it added 800 jobs at its spring hill, Tennessee plant to build the new version of GMC Acadia SUV.  The Lansing plant will continue building the Buick Enclave and Chevrolet Traverse after it retools for a month. GM also has announced other U.S. factory cuts. U.S. President Donald Trump ha...

    0 0
    19
    104483 views
  • Audi Estimates SUVs Will Account For Half Of Sales By 2025
    17 Jun 2018

    Audi is happy to report that its SUV models are selling very well this year. Since the beginning of 2018, the German car maker has delivered approximately 287,500 models from its Q crossover and SUV lineup, which translates into 36.6 percent of its total sales.  By 2025, the brand estimates that SUVs will become the most important sector for Audi, accounting for more than 50 percent of its deliveries. Simply put, by that year, one in every two new Audi vehicles will be an SUV. Interestingly, this target is already achieved on the North American market, where the Q models account for ...

    0 0
  • Kia Recalls Half A Million Vehicles In The U.S. Due To Airbag Problem
    13 Jun 2018

    Following news in March that the National Highway Traffic Safety Administration (NHTSA) was looking into reports of faulty airbags in cars made by Kia and its affiliate Hyundai, Kia has announced that it’s recalling more than half a million vehicles in the U.S. because of this issue.  The NHTSA decided to investigate this matter after learning of six accidents in which four people died and six were injured. In each of the crashes, the airbags failed to deploy because of an apparent electronic glitch. Kia is recalling 507,000 vehicles, including 2010-2013 Kia Fortes, 2011-2013 K...

    0 0
Search on the blog
Find us on

Last added auctions

2003 Toyota MATRIX
36 views
14 photos
1,800.00
No bids
2007 Acura TL
26 views
16 photos
3,200.00
No bids
2001 Chevrolet MONTE CARLO
166 views
10 photos
3,003.00
3 bids
2010 MINI COOPER CONVERTIBLE
163 views
12 photos
3,517.00
4 bids