DETROIT — U.S. new-vehicle sales rose 7.5% in the first quarter as supplies improved and sky-high prices eased a bit while the global shortage of computer chips started to wane.
But the average auto-loan rate hit 7% during the quarter, leaving open the question of whether automakers will offer reduced rates to keep buyers interested through the rest of the year. Nissan 7201 sales leaped 17.3%, and Honda HMC , which struggled to get chips last year, posted an 11.7% increase. To keep sales rolling, automakers may have to offer subsidized loan rates, which will cut into huge profits and could reduce high transaction prices, she said. Many customers, she said, can’t afford new vehicle monthly payments that hit a record average of $730.
J.D. Power said the average vehicle sales price hit a March record of $45,818, up 3.5% from a year ago. But it was down from the overall record of $47,362 set in December.
people purchasing cars when they shouldn’t be