Auto sales are falling, and cars are more expensive than ever

[Yo_Mama_Been_Loggin]

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.

-snip-

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]

1. It couldn't possibly be due to steel tariffs and lower wages!

[kimbutgar]

2. I brought a new car in 2016 on purpose because I did not want the orange maggot to have any gdp

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]

3. I'm sure that they will just

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]

4. They already are and that bubble's ripe for

Popping

https://usa.streetsblog.org/2019/02/13/americas-car-centric-transportation-policies-are-driving-us-to-ruin/

[customerserviceguy]

5. Nope

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]

6. Sales taxes are probably not deductible

if taxpayers are maxed out on deductions. It's a minor point in affordability.