It’s true that interest rates have been a challenge in the auto market lately. With rates steadily increasing and loans becoming more difficult to obtain, car buyers have faced obstacles in financing their purchases. On average, term lengths for car loans have been reaching 72 months, while rates for new and used cars are around 7% and 10.5% respectively.
Despite these challenges, auto sales have been surprisingly robust, which is encouraging. It seems that even with higher rates, customers have been finding ways to make their purchases work. It’s worth noting that the Federal Reserve has indicated a possible shift in their approach to rising costs. They may pause or even reverse their series of rate hikes, which could stabilize rates in the latter half of this year and potentially lead to a decrease in 2024.