Cars shoppers Heading for A new round of sticker shock If the strike by the United Auto Workers doesn’t end soon, particularly for Popular vehicles are already available in Short supply
As the walkout continues, the number of cars on dealer lots will decrease. Dealers are likely to Manufacturers are paying them incentives, but they don’t get to keep them to Cut prices to boost sales.
Panic buying by consumers could make the situation worse.
Some analysts believe that it may take several weeks for dealer lots to start. to look a bit empty. Ford, General Motors and Stellantis built up inventories of vehicles ahead of Thursday night’s strikeThe. UAW It is not clear how to proceed. to Limit the walkout to just three plants – at least for now.
“Guys at the dealerships are going to tell you, ‘The UAW this and that,’ but their lots are full of cars now,” Ivan Drury is the director of Edmunds’ insights, an information provider about the automotive industry. He estimates that, at the current levels of inventory and pace of vehicle sales most car shoppers shouldn’t notice much change for A couple of months.
Detroit Three vehicles sat in Stocks last 52 days on average before they are sold in According to the latest statistics, August is now longer than it was at the beginning of last year. to Edmunds data.
It is important to note that the word “you” means “you”. UAW began striking at factories that make only a few vehicles – Ford Broncos and Rangers, Jeep Wranglers, Chevrolet mid-size pickups and GMC vans. Dealers are well stocked with those.
The union claimed it had “reasonably productive conversations” Stellantis shared details of its latest offer with Ford on Saturday to The union.
Mark Stewart, Chief Operating Officer for North America, Stellantis, has also revealed contingency plans. to He declined to limit the impact of consumers. to Tell us more about them.
“We really want to encourage customers: Don’t be afraid,” Stewart suggested they check out the offers available at dealerships.
If you want to know more about the strike isn’t ended soon, however, there could be shortages of some makes and models –big sellers or vehicles that are already in The Ford F-Series, GMC Sierra, Chevrolet Silverado, and Tahoe are in short supply. The car Companies have plants in Mexico that could keep producing some models – as long as they have a supply of parts.
While the supply of cars from Detroit’s Big Three will largely depend on how long the strike How long it lasts and spreads to other plants – there were rumors Friday that additional factories could be added next week – there are other factors.
Garrett Nelson is an automotive analyst for CFRA Research is expecting manufacturers to Eliminate incentives that pay to dealers to boost sales. These incentives allow dealers to reduce their prices. sticker prices, and they’re often targeted at slower-selling models.
The biggest wild card could be consumer psychology – panic-buying that would drive up prices.
“The impact on prices would be almost instantaneous,” Nelson Says “Dealers will say, ‘Look, we’re not sure how many additional vehicles we’re going to be getting.’ There could be somewhat of a panic effect that could stimulate consumers to make that purchase sooner rather than later.”
Stellantis and Ford are the successors to GM, Ford, and GM to Fiat Chrysler is becoming harder to Find, there will be ripple effects. Customers who need to buy a vehicle will find it. likely Turnaround to Who are the non-union competitors, like Toyota, Honda or Tesla? to Charge them more.
“You’ll start to see that pricing gets affected everywhere — and not just on the new end of the business,” Drury Says “Used-car values, which have been seeing a bit of a decline from last year’s highs, could start going back up” Consumers look for a variety of products for Affordable Alternative to New vehicles
Consumers who lease a vehicle are on the rise to Drury says that the lease companies want their cars back while the used-car market is vulnerable. Drury claims that leasing companies want to return their vehicles while used-car The market is hot. You might not want to buy. to Extend the lease.
Shoppers for New, used or leased car Interest rates are rising. Average rate for A new-car The average rate of interest on loans this week was 7.46%. for a used carIt was 8.6%, according to to Bankrate.
The high rates are contributing to Spike in Rejections for Consumers looking for to Purchase a ride. The Federal Reserve Bank of New York announced this month that the rejection rate for The bank’s auto loan rate is now at 14.2%, its highest level since it began tracking the figures. in The increase is from 9.1% in the six-month period prior to 2013. (Rejections also went up. for Mortgages, credit cards, and other loans are being repaid late by a growing number of people. Household debt The rise of the (is rising)
Auto workers had raised the possibility long before car prices began to rise. strike. A shortage of chip, disruptions in The global supply chain, coupled with strong demand, pushed up prices.
The average price for A new vehicle has jumped to $39,919 in 2020 to This year alone, the amount has been $48,798. to Kelley Blue Book. Cheap cars are available in Kelley Blue Book. all but disappearedConsumers are forced to borrow ever-longer amounts of money to Prices are limited to monthly payments. Prices for The price of used cars has risen sharply in The two years 2021 and 2022 have been slightly slipped this year.
Prices are almost always certain to The rise of the strike is settled quickly, because the auto makers’ labor costs will increase.
“It’s almost a foregone conclusion that the UAW will succeed in getting substantial wage increases,” Patrick Anderson, founder of Anderson Economic Group – a market research company – says: “Part of that is simply due to inflation, part of that is due to the profits of the automakers, and part of that is due to the leverage that the UAW has right now with a short inventory and an economy that still has a lot of people that want to buy cars.”
It is important to note that the word “you” means “you”. UAW is asking for A 36% increase in Increased expenses due to wage increases over four years and other factors for The companies. Stellantis presented its latest offer Saturday for Earnings increases of more than 21% in Hourly wage is approximately in In line with Ford and GM’s proposals
The politicians have also been pressing automakers to Workers who give up benefits and pay are a good example. to Help your employer during the Great Recession
“Now that our carmakers are enjoying robust profits, it’s time to do right by those same workers so the industry can emerge more united and competitive than ever,” Former President Barack Obama in Saturday’s statement
UAW President Shawn Fain’s sensitiveness to the impression that the union’s gains will come out of consumers’ pocketbooks. He stresses that prices had been rising even before the strikeAnd says that labor accounts for a fraction of the Big Three’s total costs.
“They could double our wages and not raise car prices and still make billions of dollars in profit,” He spoke during a presentation online to This week, union members will be voting.
It’s all enough to Avoiding the road is a common option for many drivers. car Keeping their current car It’s worth waiting a little longer. They will have a healthier bank account without car payments.
“Holding on to your car is not a bad thing,” Edmunds analyst Drury said. “It’s a lot more durable than you think it is.”