How $800 Monthly Car Payments Are Hurting Car Sales
The New York Times • • business
Key Points:
- Rising car prices, higher interest rates on auto loans, and increased insurance costs have made buying new vehicles unaffordable for many Americans, impacting automakers' sales.
- Auto sales showed mixed results early in the year, with a modest rise in January followed by a more than 3% decline in February, and analysts predict total U.S. sales will drop to about 16 million vehicles in 2026.
- Dealers and industry experts describe the situation as a crisis, highlighting the growing difficulty consumers face in affording new cars.
- Potential buyers like Joe Opsahl are postponing purchases due to significantly higher interest rates compared to previous years, making monthly payments unaffordable.
