iSeeCars.com Executive Analyst Karl Brauer joins Brad Smith’s Wealth! Auto buyer market conditions and luxury autos amid macro uncertainty from upcoming elections and Federal Reserve easing cycles We discuss how the manufacturer comes out on top compared to standard automakers.
“There are a number of macroeconomic factors from inflation to interest rates that have reduced consumer purchasing power, making cars more expensive to finance, just like homes. And interest rates are coming down, so it’s a little bit more should help,” Brauer said.
He explains: I think many people are looking forward to a rather big event in about a month. So I think there are a lot of people right now who are waiting to take big action. And that’s what we’re seeing in the decline in new and used car sales activity. Hopefully it will turn around. ”
Not all automakers are feeling the same pressure, with luxury brands performing better than standard manufacturers. “The luxury sector is performing well because consumers are less worried about their financial situation,” the analyst said. He highlighted Genesis, a Korean luxury brand owned by Hyundai (HYMTF), which recorded record sales. Brauer added: “We’re seeing that trend generally across the luxury sector. Mainstream buyers are a little hesitant right now, so it’s tougher for mainstream brands.”
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This post was written by Naomi Buchanan.
