The Impact of Inflation and Rising Interest Rates on Car Purchases in the US

InflationSalesMoney MattersCustomer RelationsHigh Tech / High Touch
Written By Jennifer Joslyn

🚗 The Impact of Inflation and Rising Interest Rates on Car Purchases in the US.

As the Federal Reserve tackles inflation by increasing interest rates, many Americans face limitations when affording new or used vehicles. The rate hikes have led to lowered buying expectations, with more people opting for used cars or choosing to repair their existing vehicles instead. This trend has particularly affected lower-income consumers with credit scores below 620, making it difficult to access auto financing. The tightening of credit has resulted in a decline in subprime and deep subprime buyers in the market, impacting the overall vehicle sales landscape.

Read more from CNBC ▶

Featured
U.S. States Gear Up for 2035 Phasing Out of Gas Cars
U.S. States Gear Up for 2035 Phasing Out of Gas Cars

Several states in the U.S., including California, Maryland, Massachusetts, New Jersey, New York, Oregon, Washington, and Rhode Island, plan to ban the sale of new gas-powered cars by 2035.

Toyota Recalls Over 750,000 Highlanders Due to Bumper Issue, Potential Accident Risk
Toyota Recalls Over 750,000 Highlanders Due to Bumper Issue, Potential Accident Risk

Toyota is recalling approximately 751,000 Highlander and Highlander Hybrid vehicles due to an issue with the mounting tabs on their bumpers that could lead to parts detaching, potentially causing accidents.

FBI's Latest Crime Data Reveals An Alarming Trend of Car Thefts
FBI's Latest Crime Data Reveals An Alarming Trend of Car Thefts

In 2022, motor vehicle thefts in the United States surged by over 8%, resulting in the theft of nearly a million vehicles valued at over $20 billion, according to the FBI's latest Crime in the Nation data.

Hyundai and Kia Recall 3.4 Million Vehicles in the U.S. Over Fire Risk Linked to Brake Control Module Leaks
Hyundai and Kia Recall 3.4 Million Vehicles in the U.S. Over Fire Risk Linked to Brake Control Module Leaks

Hyundai and Kia are recalling nearly 3.4 million vehicles in the U.S. due to the risk of engine compartment fires.

Why Are Fatalities on the Rise Despite Advances in Car Safety?
Why Are Fatalities on the Rise Despite Advances in Car Safety?

Despite advancements in car safety technology, the number of road fatalities in the U.S. has been increasing over the past decade.

Auto Supplier BorgWarner Cautions on Potential Impact Amid Expanding UAW Strike
Auto Supplier BorgWarner Cautions on Potential Impact Amid Expanding UAW Strike

Automotive supplier BorgWarner anticipates a relatively modest impact from the United Auto Workers (UAW) strikes at present.

GM President Mark Reuss Challenges UAW Rhetoric Amidst Ongoing Strikes
GM President Mark Reuss Challenges UAW Rhetoric Amidst Ongoing Strikes

General Motors (GM) President Mark Reuss has criticized the United Auto Workers (UAW) union for its rhetoric and the spread of "misinformation" during ongoing contract negotiations, as the UAW enters day six of targeted strikes against Detroit automakers.

Top-Rated Affordable Performance Cars Under $33,000 for Budget-Conscious Enthusiasts
Top-Rated Affordable Performance Cars Under $33,000 for Budget-Conscious Enthusiasts

Car enthusiasts seeking affordable performance cars can find options with starting prices under $33,000.

Car Manufacturers' Data Practices Raise Privacy Concerns, Reveals Study
Car Manufacturers' Data Practices Raise Privacy Concerns, Reveals Study

A new study reveals that many major car manufacturers admit to selling personal information collected from their vehicles, with vague information about the buyers.

Ship Fire Originated in Decks Containing Stored Cars
Ship Fire Originated in Decks Containing Stored Cars

A ship fire off the Dutch coast that lasted almost a week originated in the upper decks where cars were stored, as stated by the CEO of the salvage company involved.

Volvo Recalls 63,095 Trucks Due to Defective Wiper Motors
Volvo Recalls 63,095 Trucks Due to Defective Wiper Motors

Volvo Trucks North America is recalling 63,095 trucks in the U.S. and Canada due to a potential issue with the windshield wiper motor.

Fire Continues to Blaze on Car-Carrying Cargo Ship Near Dutch Bird Sanctuary
Fire Continues to Blaze on Car-Carrying Cargo Ship Near Dutch Bird Sanctuary

A cargo ship carrying cars remains ablaze near a Dutch bird habitat, and firefighters and salvage crews are waiting for the flames to subside before attempting to board the vessel.

Debunking Claims of Autonomous Vehicle Companies
Debunking Claims of Autonomous Vehicle Companies

The United States is experiencing a concerning rise in traffic fatalities while other countries are seeing a decline.

Flying Cars: Are They on the Horizon?
Flying Cars: Are They on the Horizon?

The long-awaited era of flying cars may become a reality by 2025 as Tavistock Development Company plans to launch its first flying car service in central Florida.

UAW President Takes Aggressive Approach in Contract Talks with Detroit Automakers
UAW President Takes Aggressive Approach in Contract Talks with Detroit Automakers

United Auto Workers (UAW) President Shawn Fain is leading the union with a new, politically savvy strategy in contract negotiations with Detroit automakers.

EV Auto Industry Struggles as Supply Outpaces Consumer Demand
EV Auto Industry Struggles as Supply Outpaces Consumer Demand

The auto industry is facing a significant challenge as the supply of electric vehicles outpaces consumer demand.

Wholesale Used Vehicle Prices Experience Significant Decline, Set to Stabilize in Second Half of the Year
Wholesale Used Vehicle Prices Experience Significant Decline, Set to Stabilize in Second Half of the Year

Wholesale used vehicle prices recorded their largest monthly decline since the start of the pandemic, signaling a potential stabilization in the market during the second half of the year.

U.S. Electric Vehicle Sales Growth Slows as Dealer Inventory Increases
U.S. Electric Vehicle Sales Growth Slows as Dealer Inventory Increases

The growth of electric vehicle sales in the U.S. has started to taper off as dealer lots become filled with unsold battery-powered models.

Volkswagen to Test Self-Driving Electric Vans in Austin, Texas, and Expand Testing to More US Cities
Volkswagen to Test Self-Driving Electric Vans in Austin, Texas, and Expand Testing to More US Cities

Volkswagen has announced plans to test self-driving electric vehicles in Austin, Texas, starting later this month.

Tesla Shares Soar as Price Reductions Drive Surge in Car Deliveries
Tesla Shares Soar as Price Reductions Drive Surge in Car Deliveries

Shares of Tesla experienced a significant surge on Monday morning following the announcement of a record number of car deliveries in the second quarter.

Is there deception afoot with the push for expensive electric cars?
Is there deception afoot with the push for expensive electric cars?

The author argues that electric vehicles (EVs) are not true innovations but rather a result of government support and artificial market incentives.

When was the first electrically powered windshield wiper invented?
When was the first electrically powered windshield wiper invented?

In 1917, Charlotte, a woman inventor, built upon Mary Anderson's manual windshield wiper design.

The implications of Tesla's charging partnerships with Ford and GM for the electric vehicle industry
The implications of Tesla's charging partnerships with Ford and GM for the electric vehicle industry

Ford Motor, General Motors, and Tesla have made significant strides in revolutionizing the electric vehicle (EV) charging infrastructure in North America.

The Toyota manufacturer in Pakistan serves as a cautionary tale for supply chain management
The Toyota manufacturer in Pakistan serves as a cautionary tale for supply chain management

The Indus Motor Company (IMC) in Pakistan, which manufactures Toyota vehicles, has experienced ongoing production problems due to inventory shortages.

Production at Toyota Indus has been temporarily halted
Production at Toyota Indus has been temporarily halted

Toyota Indus, a subsidiary of Toyota operating in Pakistan, has announced the complete shutdown of its production plant in Karachi from June 3 to June 8, 2023.

The Impact of Inflation and Rising Interest Rates on Car Purchases in the US
The Impact of Inflation and Rising Interest Rates on Car Purchases in the US

As the Federal Reserve tackles inflation by increasing interest rates, many Americans face limitations when affording new or used vehicles.

Extended Ownership: Americans Opt for Longer Car Tenure
Extended Ownership: Americans Opt for Longer Car Tenure

Car prices have reached a record high, dissuading many Americans from purchasing new vehicles.

Navigating Bumpy Terrain: Waste Industry Braces for Challenges in California
Navigating Bumpy Terrain: Waste Industry Braces for Challenges in California

Haulers and vehicle manufacturers anticipate a surge in regulatory demands and anticipate challenges due to a constrained supply of battery-electric trucks.

Costs of Electrifying the US Auto Industry are Sky-High
Costs of Electrifying the US Auto Industry are Sky-High

To reach proposed EPA emissions targets for 2032, the US will need to expand EV adoption and infrastructure, which will come at a high cost.

Honda, a Japanese Automaker, Unveils its EV Strategy
Honda, a Japanese Automaker, Unveils its EV Strategy

Honda has announced in Tokyo its preparations for a transition to electric cars in North America.

Jennifer Joslyn
Previous

Macy's and Costco Issue a Cautionary Note on the Economy
Next

Container Shipping Industry Confronts Unprecedented Downturn in Long-Term Rates