Market Insights

Affordability

Monday November 6, 2017 4:19 min Read

The average U.S. household owns 1.9 cars, but how much are they really spending on the actual vehicle? In this video, Jonathan Smoke, Chief Economist at Cox Automotive, provides insight into affordability – a key factor that will increasingly influence the automotive market.

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Article Highlights

Consumer expenses are finally seeing some financial relief, but this does not necessarily correlate to more money able to be spent on a vehicle.
Interest rates will continue to rise over the next few years as they return to more normal averages. This, too, will impact vehicle affordability as consumers have taken advantage of historically low interest rates the past few years.
While consumers, manufacturers and dealers have benefited from leasing the past few years, forecasts show the cost advantage of leasing is eroding.

Affordability

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