High Costs and Interest Rates Slow US Q1 Auto Sales
U.S. auto sales are set to fall 6.5 percent this quarter as high rates and fuel prices deter buyers. Increased inventory may lead to better consumer deals.
New vehicle sales in the United States are expected to decline during the first quarter of 2026 as economic uncertainty and high borrowing costs keep potential buyers away from dealerships. Industry expert Cox Automotive anticipates that first-quarter sales will fall by 6.5% compared to the previous year, with total annual sales projected to drop by 2.6%. This downward trend is attributed to the loss of federal electric vehicle tax credits and the impact of sustained high interest rates.
Charlie Chesbrough, senior economist at Cox Automotive, noted that the market is facing several headwinds.
