An increasing number of vehicle dealers in the U.S. are witnessing a visible drop in customer footfall in showrooms and in retail sales of vehicles, hinting that a slowdown in vehicle sales in the country that was augured for a long time has arrived. Scott Adams, the owner of a Toyota dealership in Missouri, states that pull back in business is definitely evident. While the business in September was off too, car sales went down a staggering 12% and truck sales were down by nearly 23% this month. Other dealers have also stated that their sales have seen a downward spiral in the last weekend.
Mark Scarpelli, the president of a Chevrolet dealership in Antioch, Illinois, has states that while sales are keeping pace with sales seen in the last October, customers are taking a long time before boiling down on a purchase of a car or a truck. The higher interest rates are leading to a bigger pause before a purchase. Interest rates on vehicle loans have steadily increased and are up to 5.76% in the second quarter of this year as compared to the 5.2% during the same time last year.
For over a year now, analysts have envisioned that sales of vehicles in the country are likely to slow down owing to a number of factors, including a vast rise in used cars that are 3 year old entering the used car market. This vast pool of old vehicles, which no doubt have a low mileage, allow for an attractive option for potential buyers at a much cheaper rate. Still, the sales have remained robust and are likely to reach 17 mn vehicles for the fourth year in a row, which will be a record for the industry.