https://www.autonews.com/world-congress/affordability-tops-concerns-nadas-welch
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DETROIT — Average American consumers getting priced out of the new-vehicle market is "probably the biggest thing" that Peter Welch worries about, the CEO of the National Automobile Dealers Association said Tuesday at the Automotive News World Congress here.
Welch said the latest figures he's seen — through October of last year — show new vehicle retail prices hitting an all-time high of $35,377, with an average monthly payment at $538 and interest rates up to an average of 5.76 percent on new vehicles and to about 9 percent on used ones. Loan terms are longer than ever, and now average 64.3 months. And the number of vehicles delivering $1,000-a-month payments has never been higher, he said.
"You know, people buying $55,000 pickup trucks with $1,000-a-month payments — I've never seen it," Welch said. "A lot of people don't think that's sustainable."
Welch said most of the customers at NADA's 18,500 dealer rooftops aren't affluent buyers — they're a single mom buying a used Toyota Corolla, for example. As pressure on affordability mounts, Welch said cost can go "hand in hand" with government regulation. While stressing that he's not taking a position on the government mandating things such as fuel economy standards or new safety features, "they all come with a price," he said. He added that new-vehicle prices appear headed toward hitting $40,000 with $800 payments
"That is going to put a giant dent in the SAARs and it almost makes me wonder if at some point we're going to see another Henry Ford," offering new and more affordable vehicles, Welch said....
Quote
DETROIT — Average American consumers getting priced out of the new-vehicle market is "probably the biggest thing" that Peter Welch worries about, the CEO of the National Automobile Dealers Association said Tuesday at the Automotive News World Congress here.
Welch said the latest figures he's seen — through October of last year — show new vehicle retail prices hitting an all-time high of $35,377, with an average monthly payment at $538 and interest rates up to an average of 5.76 percent on new vehicles and to about 9 percent on used ones. Loan terms are longer than ever, and now average 64.3 months. And the number of vehicles delivering $1,000-a-month payments has never been higher, he said.
"You know, people buying $55,000 pickup trucks with $1,000-a-month payments — I've never seen it," Welch said. "A lot of people don't think that's sustainable."
Welch said most of the customers at NADA's 18,500 dealer rooftops aren't affluent buyers — they're a single mom buying a used Toyota Corolla, for example. As pressure on affordability mounts, Welch said cost can go "hand in hand" with government regulation. While stressing that he's not taking a position on the government mandating things such as fuel economy standards or new safety features, "they all come with a price," he said. He added that new-vehicle prices appear headed toward hitting $40,000 with $800 payments
"That is going to put a giant dent in the SAARs and it almost makes me wonder if at some point we're going to see another Henry Ford," offering new and more affordable vehicles, Welch said....