The Federal Reserve increasing interest loan rates
In an effort to control inflation, the Federal Reserve has aggressively increased interest rates just as more new cars are finally available. Cox Automotive found that the new vehicle loan rate is now 7%, up 2% this year.
With already high energy prices and an upcoming harsh winter in Europe, Europe-based OEM final assembly plants could lose 1 million units per quarter between now and the end of next year according to S&P Global Mobility.
With many Floridians needing to replace damaged cars after hurricane Ian and as much as 80% of replacement shopping taking place in the used car market, used car wholesale prices could increase this fall and winter.