“October results indicate a relatively robust performance with modest year-over-year sales growth but with record consumer expenditures. Year-to-date total sales through October are anticipated to surpass 12.8 million units, reflecting a 13.6% increase compared with the same period a year ago. Nonetheless, these figures remain below pre-pandemic levels when year-to-date sales exceeded 14 million units. The UAW work stoppage, which commenced in September, has had a limited effect on October’s industry sales,” said Thomas King, president of the data and analytics division at J.D. Power.

According to the forecast higher pricing, combined with rising interest rates, are contributing to the escalation of monthly loan installments. The average monthly finance payment in October is tracking to be $728, up $11 from September 2022. This is a 1.5% increase in monthly payments from a year ago. The average interest rate for new-vehicle loans is expected to be 7.5%, an increase of 140 basis points from a year ago. Although, the month-to-month pace of rate increases are tempered when compared with the prior year.

“Used-vehicle prices have experienced a modest drop from the previous year but remain relatively close to their historical peak levels. The average trade-in equity for October is trending towards $8956, down $378 from a year ago. It’s worth noting that trade-in equity this month remains at double the amount of pre-pandemic levels, King said.