icon-branding Inventory Icon icon-mail-hovericon-mail Marketing Icon icon-operationsicon-phone-hovericon-phone Product Training Icon Sales Icon Service Icon icon-social-fb-hovericon-social-fbicon-social-google-hovericon-social-googleicon-social-linkedin-hovericon-social-linkedinicon-social-rss-hovericon-social-rss icon-social-twitter icon-social-twitter-hovericon-social-twittericon-social-youtube-hovericon-social-youtube

COVID-19 BUSINESS UPDATES

View Details x

Rising interest rates, tightening credit offer some concern

Strong 2018 sales expected

Share

Facebook Share Twitter Tweet Linkedin Share Email Email

Article Highlights

  1. Rising interest rates and tightening credit are reasons for concern, but shouldn't cause new-vehicle sales to tumble, speakers at the Automotive News World Congress said.
  2. Tightening credit is the most important issue to watch, said Jonathan Smoke, chief economist at Cox Automotive, adding that U.S. car dealers will sell more vehicles this year, but not on the new-vehicle side.
  3. Smoke forecast 16.7 million new vehicles will be sold this year, down from 17.2 million in 2017. But that dip will be offset by a 500,000-unit rise in used-vehicle sales to 39.5 million, he said.

DETROIT — Rising interest rates and tightening credit are reasons for concern, but shouldn’t cause new-vehicle sales to tumble, speakers at the Automotive News World Congress said.

Tightening credit is the most important issue to watch, said Jonathan Smoke, chief economist at Cox Automotive, adding that U.S. car dealers will sell more vehicles this year, but not on the new-vehicle side.

Smoke forecast 16.7 million new vehicles will be sold this year, down from 17.2 million in 2017. But that dip will be offset by a 500,000-unit rise in used-vehicle sales to 39.5 million, he said.

Read more›

Sign up here to receive bi-weekly updates on news and trends dominating the automotive industry.