The Auto Market Brief – Ep. #20
In this Episode
How much are higher interest rates adding to the true cost of a vehicle, even when its purchase price has not changed dramatically?
In this episode of The Auto Market Brief, host Erin Keating is joined by Chief Economist Jeremy Robb to explain why affordability remains under pressure. They cover rising auto loan rates, growing consumer credit strain, higher ownership costs, and what rebuilding inventory and new EV strategies mean for the market.
Key Takeaways
Borrowing Costs and Credit Strain:
Auto loan rates moved higher in October, and Jeremy shows what that means over time: interest on a used-vehicle loan has nearly doubled since 2019. Defaults are also rising across every credit tier, from subprime to prime-plus.
Ownership Costs Beyond the Sticker Price:
Inflation, insurance, and a 5.8% year-over-year increase in maintenance and repair costs keep adding to what consumers pay to own a vehicle. Meanwhile, wholesale values continue to soften through October.
More Inventory, Not More Affordable Choice:
Erin explains why rising new-vehicle supply doesn’t necessarily give buyers more affordable options. She also looks at how Slate and Ford are betting on lower-priced EVs to help close that gap.
The episode also covers EV market share, incentives during the model-year changeover, Tesla’s Roadster demonstration, and a new federal exemption for Level 4 autonomous commercial trucks.
00:00 Intro
01:45 Auto Loan Rates Climb Higher
04:15 Shopping by Payment and the Real Cost of Interest
06:39 Defaults and Delinquencies Worsen
08:37 CPI, Energy, and Vehicle Prices
10:35 Insurance, Maintenance, and Repair Costs
12:18 Why Older Vehicles Hold Their Appeal
14:10 Manheim Mid-Month Wholesale Values
17:03 New-Vehicle Inventory Rebuilds
18:45 Model-Year Transition and Incentives
20:05 Tesla’s Flying Roadster
21:25 EV Sales and Market Share
22:15 Slate’s Bare-Bones EV and Experience Center
24:00 Ford Fathom Opens Sign-Ups
25:19 Autonomous Trucking Gets a Regulatory Exemption
28:35 Outro
