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DETROIT (AP) – Neither rising gas prices nor rising interest rates could hinder US auto sales in the first half. According to Edmunds.com, sales rose 1.8% in the first half, while June sales grew about 5% over the previous year.
According to analysts, this confidence has been fueled by strong consumer confidence. 19659010] But analysts at Cox Automotive, which includes Kelley Blue Book, have issued a caveat on the numbers, explaining that much of the increase was due to low-profit sales to fleet buyers like car rental companies and individuals. Sales are "defying gravity," said Jonathan Smoke, Cox's chief economist. "Retail sales have been stable, and even those sales have been supported by incentives up 6%."
Cox analysts also said that rising interest rates and a possible trade war prices and payments and reduce auto sales in the second half. Yet, as automakers are willing to spend to keep their market share, Cox analysts have increased their forecasts for 100.8 million vehicles in 2016.
Trucks and SUVs accounted for 68% of the market in June.
The Federal Reserve raised its benchmark interest rate for the second time in mid-June and reported that it could accelerate the pace of rate hikes. The central bank has raised its main short-term rate from a modest quarter point to a still low level of 1.75% to 2%. This means that consumers and businesses will face higher loan rates over time.
But Cox analysts said that auto interest rates remained stable in June, although they expect them to rise. Bankrate.com said on its website new auto loans are now around 4.75 percent. Gas prices climbed 63 cents per gallon a year ago to reach an average price of $ 2.86, according to AAA, taking a larger share of household budgets.
This is how the big car manufacturers get out of it during the first six months of the year. according to Edmunds, who regularly provides content, including automotive advice and criticism, for distribution by the Associated Press:
– General Motors, up 4.2 percent
– Ford, down 1.8 percent. 3.0%
– Fiat Chrysler, up 4.5%
– Honda down 0.5%
– Nissan down 4.8%
– Hyundai down 3.3%
– Volkswagen up 7.2% per cent
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