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☆ New cars are finally back in stock — but Americans might not be able to afford them
▼ + stars: | 2022-10-07 | by ( Michael Wayland | ) www.cnbc.com time to read: +5 min

Mario Tama | Getty ImagesDETROIT — New cars are slowly becoming more widely available, as supply chain bottlenecks finally start to ease. But now, an increasing number of Americans might not want them or be able to afford them. With the Federal Reserve aggressively hiking interest rates to fight inflation, consumers are finding that the cost of financing a new car is suddenly a lot higher than it was even earlier this year. That means many Americans may no longer to be able to afford the new cars that are starting to arrive on dealer lots. That, combined with rising interest rates, is pushing more car shoppers to look at used vehicles.

New car prices may finally start declining in the coming months — but don't expect to pay much less on a monthly basis due to higher interest rates. Thanks to stalling sales and a 17-month high in vehicle supplies, "deflation" may finally be arriving for new car prices, Jonas said. Power also predicted lower list prices could come in the coming quarters thanks to rising interest rates, higher vehicle availability and worsening economic conditions that are likely to affect overall demand. And the lower list prices would come at a time when interest rates to borrow for car purchases are at levels not seen in 15 years — nearly 6% on average. Analysts at auto group Edmunds.com also suggest customers think about settling for a larger monthly payment to avoid paying more overall.

☆ If you're waiting for a better time to buy a new car, keep waiting
▼ + stars: | 2022-10-04 | by ( Peter Valdes-Dapena | ) edition.cnn.com time to read: +5 min

CNN —Average car prices are shooting higher and higher thanks to continued auto parts shortages. The end result: Don’t expect the car market to return to normal anytime soon. The average car on America’s roads today is over 12 years old, according to S&P Global Mobility. In past years, when the Fed pushed up interest rates, car makers would come out with artificially low interest rate car loans – sometimes even 0% – as a purchase incentive. Car shoppers without good credit are already being forced out of the new car market, said Smoke.

☆ CarMax results fall short as inflation-hit buyers rethink purchases
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +2 min

Sept 29 (Reuters) - Shares of CarMax Inc (KMX.N) fell 20% in premarket trading on Thursday after the top U.S. used-car retailer's second-quarter results were slammed by the impact of rising inflation on consumer spending. Strong demand for personal transport has led to steady sales of both new and used cars in the United States so far, but rising interest rates and higher car prices are starting to upend that trend. Register now for FREE unlimited access to Reuters.com RegisterAuto research firm Cox Automotive, which tracks U.S. vehicle market trends, on Wednesday cut its forecast for new and used vehicle sales on worsening consumer sentiment. Consumers are pulling themselves out of the purchase process as rising interest rates and high vehicle prices make monthly payments unaffordable, said Cox Automotive Chief Economist Jonathan Smoke. Ford Motor Co's (F.N) shares tumbled last week after the automaker said it was experiencing higher inflationary pressures.

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