After years of post-pandemic price inflation, shoppers are clamoring for affordable cars, but incentives are cutting into profits.
DETROIT ? Investors are punishing automakers' stocks this week after second-quarter earnings reports exposed industrywide issues of slowing sales and high prices, just as the companies are having to spend huge sums to make new electric and gas vehicles. Each auto company has unique problems, but common to many are growing vehicle stockpiles on dealer lots, requiring increased discounts to sell them to buyers with stressed-out household budgets. Ford Motor Co.
' The average price of a new vehicle in the U.S. peaked in December at $48,408, according to data from Edmunds.com. It dropped a little to $47,616 last month. Discounts, which were minimal or nonexistent for the past few years, rose to an average of $1,819 per vehicle in June. As the Federal Reserve raised interest rates, the average new auto loan rate jumped from a low of 4.1% in December of 2021 to 7.3% last month.
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