And now that Fed has raised the interest rate?
What can we expect for 2016 sales, especially in light of the recent quarter-percentage-point rate hike by the Federal Reserve Board? Low interest rates and 0 percent financing were responsible for a lot of auto sales last year.
Analysts donêt expect much effect from the rate hike, at least for auto buyers with good credit. Subprime buyers could be affected, AutoTrends consultant Joe Phillippi told TheDetroitBureau.com. If auto loan rates are affected, he said, consumers could decide to buy a more modest vehicle.
Edmunds.com analyst Jessica Caldwell doesnêt expect much effect on auto loans. We donêt expect auto loan rates to rise in the near term, especially with automakers continuing to offer successful low-APR promotions, she said. As [consumers] continue to respond to these deals, automakers will do everything in their power to continue offering them.Download Bulletin PDF