Automotive News, Feb. 4, 2019 — As one of the lowest-volume months for new U.S. light-vehicle sales, January is seldom the best barometer of how the year will pan out. But surging interest rates on auto loans and steadily rising vehicle prices make clear that automakers will be hard-pressed to produce sales gains in 2019.
The average interest rate on new vehicles rose last month to 6.19 percent — the second highest in 10 years — from 4.99 percent a year ago, according to Edmunds. And Kelley Blue Book said the industry’s average transaction price rose 4.2 percent to $37,149. Combined, those factors mean a big jump in the monthly payment for many consumers interested in trading up.
That potential for sticker shock, along with extreme cold weather and uncertainty created by the 35-day partial federal government shutdown, helped push sales down 1 percent in January.
