Americans can't afford expensive vehicles.

Everett WA

Description

U.S. new-vehicle sales from January through March were likely below 3.3 million, down over 14% from the first quarter of 2021, industry analysts say. The decline is a supply issue: Automakers continue to face production disruptions amid a global shortage of semiconductors. Edmunds expects General Motors, Honda and Nissan to report first-quarter sales declines of 20% or more, with Ford faring only slightly better. But while sales are falling, prices are rising: TrueCar analysts said that the average selling price of a new vehicle in the U.S. likely rose 15.4% in March from a year ago, to nearly $43,500. Consumer concerns about a recession, including higher gas and vehicle prices – likely played a role in the quarter’s projected sales decline, which includes an expected drop of at least 24% in March. But the biggest factor is the thin supply of new vehicles amid a global shortage of semiconductor chips.