Auto Dealerships in the U.S. See Noticeable Slowdown in Sales

Auto Dealerships

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.

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Rohit Bhisey

An AVP at the Marketing department at Transparency Market Research, Rohit has his fingers firmly placed on the pulse of the business world. He has a keen eye for any new development that could rock our world. He is adept at strategizing to boost web traffic and generate new leads. He is also an expert in Google Analytics, something which he feels could go a long way in getting sites more traction by providing necessary insights. Rohit is a Bachelor in Computer Science from the Pandit Ravishankar Shukla University and takes keen interest in writing news articles on technology, business, and healthcare.

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