U.S. New Vehicle Prices to Hit Record High Despite Rising Interest Rates

U.S. new vehicle prices are expected to hit a record high in August on the back of strong demand despite rising interest rates. Average transaction prices are set to reach a record $46,259, an 11.5% increase from a year earlier, according to the report from auto industry consultants J.D. Power and LMC Automotive.

Average Monthly Car Payment Hits $702

For new vehicles, the average auto loan is for 70.4 months (nearly six years) and monthly payments have climbed past $700 for the first time ever, according to new data from Edmunds.

Average New Auto Price Hits Record in July

The average new car in America sold for $48,182 in July,
beating the record set last month, according to Kelley Blue
Book data. July prices rose 0.3% ($139) from June and
11.9% ($5,126) from July 2021.

Auto On The Rebound For Fox Stations

CEO Lachlan Murdoch said today: “We’re currently seeing a return to growth in the auto category for the first time in a couple of years. This stability of the base market provides a strong foundation for the upcoming political cycle, where the outlook is remarkably strong.”

EVs Getting Attention, but Hybrids Gain Traction

Plug-in hybrid sales are climbing in the U.S., in part because of the recent surge in gasoline prices. Automakers sold a record 176,000 such cars last year, according to Wards Intelligence, up from 69,000 in 2020.

Autos Remain Scarce, Buyers Getting That Way

The dog days of summer drag on for the auto industry, unable to find respite from a withering supply chain crisis that has left assembly lines limping and dealership lots bare, Automotive News reports.

July Auto Sales To Fall on Limited Supplies

A shortage of vehicles at dealers due to the supply-chain
snarls gripping automakers is expected to drive down U.S.
auto retail sales in July, according to industry watchers.

U.S. Light-Vehicle Sales Forecast Cut for 2022; Inventory Outlook Weakens

Even if there is consumer pushback from rising prices in second-half 2022, and barring a broadbased recession – one with major cutbacks in spending accompanied by job losses – expect production to continue favoring higher-priced cars, CUVs and SUVs, as well as fullsize trucks, and for the combined mix of total inventory for those vehicles to remain above historical norms.