Auto Sales Slump as Buyers Exit Market
March 30, 2022–Chip shortages, an ongoing conflict in Ukraine, and rising prices could spell the lowest first quarter volume in auto sales in a decade, said Reuters.
Light vehicle sales for March could see drops of more than 24 percent, a decline of more than 16 percent in the first quarter, as new vehicle prices hit record highs. Part of this shift is the loss of less affluent buyers in the market. Buyers with incomes below $75,000 are less likely to buy a vehicle than they were a year ago.
"Make no mistake, this market is stuck in low gear," said Charlie Chesbrough, senior economist at Cox Automotive, adding that sales will remain at current levels until supply improves.