US auto sales fell slightly in 3Q, even with September gains
Edmunds.com said Monday that sales fell 0.9% from July through September, with most automakers reporting declines. General Motors was a notable exception, logging a big increase.
Many companies, including GM, said sales rose in September as shortages of computer chips and other parts started to ease and auto factories were able to produce more, increasing vehicle supplies. But analysts said any monthly gain may be short lived due to high prices and rising interest rates.
“With increasing interest rates, affordability is being tested,” Zack Krelle, an industry analyst at TrueCar. “We're seeing consumers faced with the reality that to afford the same vehicle at the same monthly payment as last year, they are forced to increase their down payment, which is creating affordability challenges.”
Last month, new auto prices averaged $45,622, the fourth-highest monthly price on record, according to J.D. Power. In addition, average auto loan interest rates hit 5.7% between July and September, up from 4.3% a year ago, with terms stretched to average over 70 months, Edmunds said.
