Auto Sales Slump as Buyers Exit Market

March 30, 2022

Light vehicle sales approach lowest levels in nearly a decade as less affluent buyers choose not to purchase vehicles.

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.

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Ratchet+Wrench Staff Reporters

The Ratchet+Wrench staff reporters have a combined two-plus decades of journalism and mechanical repair experience.

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