From CNBC: 2024-09-30 13:45:01

The Federal Reserve’s decision to cut interest rates for the first time in over four years is expected to eventually boost new vehicle sales, but not as quickly as some may hope. Auto loan rates, which are near historic highs, will take time to decrease, with the biggest improvements not expected until early next year. Auto loan 30-day delinquency rates have increased in recent years, reaching levels above pre-pandemic numbers. High interest rates, along with near-record-high average prices for new and used vehicles, have created affordability challenges for consumers. Despite falling from pandemic-related peaks, both average new vehicle prices and financing amounts remain elevated compared to historical levels. If rates continue to decline, consumers can expect relief in monthly payments.



Read more at CNBC: Why the Fed’s rate cut won’t immediately help car buyers or sales