A Cox Automotive analysis of new-vehicle sale prices and average interest rates suggests certain General Motors and Stellantis brands have the greatest exposure to higher rates.
Cox’s assessment March 28 came about two weeks after the Federal Reserve raised the federal funds’ target rate to 0.25 to 0.5 percent, planned to sell debt holding and anticipated that “ongoing increases in the target range will be appropriate.” The Fed’s next meeting will be May 3 and 4.
Its actions trickle down to auto loan interest rates. Cox Senior Economist Charlie Chesbrough said monetary policy was changing and interest rates were likely to rise over the next couple of years.
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