Retail Automotive Market Sees Signs of Steadying
The retail automotive market is showing signs of stabilization due to recent Federal Reserve rate cuts and increased automaker incentives. These changes are easing financial pressures on buyers and fostering a more balanced environment for consumers and dealers.
Experts told WardsAuto’s Nancy Dunham this is a positive shift that follows months of market turbulence, suggesting that affordability and demand could improve heading into the new year.
“The growth and balances that consumers are taking on … is slowing down. The growth in delinquency is slowing down as well,” said Satyan Merchant, senior vice president of automotive for TransUnion’s financial services vertical, tells WardsAuto. “That means the consumer might be doing slightly better (economically) than a year ago. … If these trends continue, where the consumer is paying a little bit less on a monthly payment on a financed vehicle, I think that’s a positive sign in the industry. And it may lead to more origination growth.”
