Wednesday, March 29

What Do an Uneven Car Supply and Rising Interest Rates Mean for 2023's Auto Sales? | WSJ




Rapidly rising interest rates have made monthly car payments more expensive for many buyers. At Adam Lee’s Jeep dealership, customers are seeing something they haven’t in years: lots of new cars.

But while supply is returning, higher interest rates are hitting demand and sparking concerns that 2023 could be another turbulent year for the car industry.

Photo Illustration: Adam Falk

0:00 Will 2023 be a boom or bust year for the car industry?
0:57 What rising car inventories could mean for the auto market
2:42 Why many vehicle prices aren’t exactly reasonable right now
4:25 What factors this year will affect car demand?
5:35 How 2023 could actually be a ‘sweet-spot’ year for the industry

#Car #SupplyChain #WSJ

10 Comments

  • They need to get real on prices. I mean a house is selling for what these vehicles are priced at. That’s the truth. I mean look at the median income of the area you’re in. No more than 30% of monthly income should be spent on rent or a house payment. Why on earth would someone use that same calculus on a depreciating asset??

  • Curious if overly luxurious amenities are allowing automakers to inflate prices. Like the Maverick, it has what customers want, need, and can afford. 65k for a big pickup is unrealistic. 45k for an SUV is also too much to ask for.

    Bring prices down. Period. If automakers can’t bring prices down, then revert the amenities to bring prices down. How many of us need a tailgate that has 5 positions? How many of us need a tiny wheel to control reverse trailering? How many of us need SUVs that parallel park automatically, follow the car in front at the same speed, or have a panoramic sunroof?

    Yes, these things are “nice”, but they’re selling points and moreover, they’re things people will blindly pay for to feel better than everyone else, and manufacturers know it. The Joneses will always have something better, but that doesn’t mean we always need to keep up because manufacturers dictate it.

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