With the auto industry going back to post covid times, the industry has faced many uphill battles this past year, and the top 3 seem to be:
1. Inflation in the market.
2. Volatile book values for vehicles.
3. INTEREST RATES!
The trifecta listed above has had a big impact on the auto industry as a whole. With the Feds continuing to raise rates and the price of cars continuing to climb, auto sales seem to be down everywhere, and customers are holding off on upgrading their vehicles. So, when do we get a break?
Fortunately, relief seems to be on the horizon as the feds have voted unanimously to reduce interest rates to a more "normalized" range. This move is expected to make vehicles more affordable and reasonable for customers, a significant victory for the auto industry. This should help drive more traffic back into dealerships and take better care of customers.
If the trend in rate drops continues as projected, we can expect to see an increase in sales for 2024.
Written by: Stephany Whitted
Reuters and Dan Shine of Automotive News. (2023, December 13). Fed flags end of rate hikes, sees lower borrowing costs in 2024.
Automotive News. https://www.autonews.com/finance-insurance/fed-leaves-interest-rates-unchanged-signals-cuts-2024
