U.S. Carmakers' Sales Surge Despite Higher Prices

During the summer, automakers reported significant increases in new vehicle sales, defying factors such as high prices, rising interest rates, and even a limited strike against Detroit companies, according to Tom Krisher's report for the Associated Press (AP).

General Motors reported a 21.2% increase in sales. I Photo: General Motors Facebook

New vehicle sales in the industry climbed by 16.3% from July through September, as consumer demand remained robust. This trend persisted despite an average new vehicle loan rate of 7.4% and an average vehicle price exceeding $45,500.

Additionally, vehicle supplies continued to recover from shortages of computer chips and other parts that began during the pandemic and are now easing.

With a wider range of options available, more consumers opted to purchase vehicles, even with an average monthly payment of $736.

"I think this is primarily due to replacement purchases and essential needs," stated Ivan Drury, director of insights at Edmunds.com.

Since the onset of the pandemic in 2020, pent-up demand has been growing, with many consumers delaying purchases in anticipation of lower prices and improved supplies. However, the Federal Reserve's decision to raise interest rates had an impact.

"Unfortunately, some people in that category enter the new vehicle market because external factors have compelled them to do so," Drury explained, citing issues like a failing transmission in their current vehicle.

From July through September, automakers collectively sold just shy of 4 million vehicles, as reported by Motorintelligence.com.

General Motors reported a 21.2% increase in sales, while Toyota's sales rose by 12.2%. Honda saw a substantial 52.7% increase, while Nissan's sales jumped by 40.8%, and Hyundai's sales increased by 10.2%. Kia also experienced a rise in sales, with a 13.8% increase.

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