Mixed Economic Signals in October US Vehicle Sales

Market Share Chart courtesy of and copyright the National Automobile Dealers Association

Ken Zino of AutoInformed.com on Mixed Economic Signals in October US Vehicle Sales

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The average transaction price in October, according to J.D. Power, is forecast to be $45,599, a 2.7% increase year-over-year. However, this is only off $26 from September. The old economist’s adage that prices are sticky downward applies we think. Transaction price highs of +$46,000 were experienced during July and August.

Nonetheless, automaker discounts persist at record lows. Average incentive spending per unit, per Power, is forecast to total $882, which is down 44.7% from October 2021. This is the sixth straight month below $1000. The question is when do vehicles become un-affordable as the Federal Reserve is deliberately sending the economy into a recession to fight inflation, which the Fed caused by years of cheap monetary policy that mostly benefited the rich.

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