Used Car Sales Rise
The latest Cox Automotive Auto Market Report shows a notable decline in consumer spending volatility and stable unemployment levels, along with mixed consumer sentiment that rebounded slightly in August but later fell, according to Chief Economist Jonathan Smoke.
Retail vehicle sales demonstrated positive growth, with new car sales up 8% and used car sales increasing by 4%. Furthermore, financing options improved, as 12.1% of rates fell below 3%, while average loan rates remained stable amidst changing bond yields.
Both new- and used-vehicle supplies have tightened, and for the first time this year, used-car prices showed a marginal rise. Finally, Cox Automotive’s leading indicators depict a mixed outlook, with some year-over-year declines in leads but month-over-month improvements suggesting potential recovery.
Jonathan Smoke.
Year over year, total spending trends have notably changed, turning negative in the second half of June and varying since then. This suggests that the growth of consumer spending has slowed down and remains inconsistent.