Auto Sales Dip Again in December (2022)

Noah Yosif

"Auto sales rapidly declined for the second consecutive month to 13.3 million units in December, while annualized numbers amounted to just 13.8 million units, an 8.6 percent decrease from 2021, and the lowest overall figure since 2011. Rising interest rates, lingering supply chain issues, as well as enlarged raw materials costs forced suppliers to bolster prices, while higher price tags and general economic uncertainty pushed consumers to delay or rethink such purchases. JP Morgan research found the average car price rose by 42.5 percent in two years, while the University of Michigan’s Survey of Consumers showed car buying sentiment hit an all-time low in June on data going back to 1978. While sentiment is improving with declining new vehicle prices, high rates continue to punish borrowers. Edmunds reports that nearly 17 percent of new car purchasers have monthly payments over $1,000 per month, compared to 7 percent two years ago. NAFCU anticipates a laggard improvement in auto sales during the first half of 2023, with more robust growth in the second half."

​-NAFCU Economist Noah Yosif

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