U.S. auto sales idle as prices remain high

NEW YORK, Oct. 1 (Xinhua) — Elevated new-vehicle prices and high borrowing costs are keeping some U.S. car shoppers on the sidelines, pointing to what is expected to be another lackluster sales year for automakers, reported The Wall Street Journal (WSJ) on Tuesday.
“Industry forecasters expect third-quarter U.S. vehicle sales to come in roughly flat compared with a year earlier,” said the report. Most major automakers are scheduled to report results for the July-to-September period throughout the day Tuesday.
“The sluggish results would put automakers on pace to finish the year with U.S. vehicle sales of around 15.7 million — a slight increase from last year, when supply-chain snags were still crimping vehicle output, but still well off historic highs,” noted the report.
Carmakers posted five straight years of at least 17 million vehicle sales through 2019. Many analysts and dealers point to affordability as the primary reason why sales haven’t marched back to those levels.
The average new vehicle in the United States sold for 44,467 U.S. dollars in September, down nearly 3 percent from last year as automakers and dealers offer more discounts, according to industry tracker J.D. Power.
“But that figure is up from about 34,600 dollars at the end of 2019, reflecting years of sharp inflation during the pandemic, when a shortage of computer chips and other car parts crimped vehicle production,” the report added. ■