ARLINGTON, Va.—Total vehicle sales increased 1.2 million annualized units in April – from 15.3 million in March to 16.5 million – and were up 15.4% from the previous year.
“The surge in sales indicates pent-up demand within the industry despite rising interest rates and deteriorating economic conditions,” explained NAFCU Economist Noah Yosif.
“Affordability remains the predominant obstacle for consumers with lower incomes or weaker credit, driven by inflation and recent concern within the banking industry – despite best efforts by dealers to curtail rising sticker prices,” Yosif added. “Against the backdrop of tightening credit standards and fewer lenders, credit unions have played an outsized role in supporting this segment of the market and the overall balance of supply and demand.”
Inventory Improvements
The new data show car sales rose 10% in April, while light truck sales increased 5.8% over the month. Data on units produced – which lags a month behind sales data – showed domestic production increased 1.7% in March and inventory rose to 0.68 months of sales.
“Improvements within inventories have been essential for buoying demand, providing consumers with options when searching for vehicles that satisfy their operational preferences and financial capabilities,” Yosif stated.
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