According to Cox Automotive’s June Auto Market Report, consumer spending continues to show growth (albeit at a slower pace compared to last year) with an 11% year-over-year increase.
Certain sectors remain strong, such as vehicle sales and service, but there are signs of stress in regions like CA, NJ, MA, OR, and NY, which have seen more unemployment claims relative to their job base.
The consumer sentiment index has experienced fluctuations but is overall up 17% YOY. Gas prices have declined, contributing to an increase in sentiment.
Morning Consult/Cox Automotive
New retail sales have seen a 20% year-over-year growth, while the used market has been relatively stable in June, with sales down 10% compared to last year.
Interest rates for new auto loans have decreased to 2.8% for 0% APR deals. The volume-weighted average interest rate is 8.99% for new auto loans and 13.63% for used auto loans.
Inventory remains tight, with new inventory down 49% compared to 2019, and wholesale prices have declined by 3.4% over the last four weeks.
Overall, retail sales stabilized in June, with new sales showing substantial year-over-year growth and the used market no longer deteriorating compared to last year.
Supply remains constrained, and demand rates for used vehicles are still slightly below peak levels for the year.