Slowing car sales could fuel ‘price slack’, says Autotrader.com editor

As new and used cars continue to fetch some of their highest prices ever, some auto experts say the push for lower prices could give drivers what they want: vehicles affordable.

“As sales are down somewhat and inventory is going up, that’s going to cause prices to ease,” Autotrader.com editor Brian Moody told FOX Business’ Lydia Hu on Tuesday.

While the average annual number of car sales in the United States is around 17 million, economic data from the St. Louis Federal Reserve indicates that only 13.1 million sales are expected in 2022.

The slowdown in sales, likely due to high prices and low inventory, could force auto dealers to lower the price of the lot and offer a more affordable amount.

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“Automakers want as much inventory as people consume, so they don’t want to have limited inventory,” Moody explained. “And as they move towards that, we will naturally see prices go down.”

While a car expert predicted slowing car sales could ’cause prices to drop’, some dealers say people are currently paying well above market prices on ‘Varney & Co’ . Tuesday, June 14, 2022. (Getty Images)

Route 10 Lexus owner Tomas Maoli told Hu that, for now, some buyers are paying well above market prices despite only having two vehicles in their room. New Jersey Exhibition.

According to Maoli, the dealership sold a Lexus SUV on Monday for $50,000 over MSRP.

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The average transaction price for used cars rose more than 16% year over year to $28,365, according to JD Power, and $47,148 for new cars – the second highest average cost on registration.

The The used car market is under pressure since last year due to a shortage of new car inventory due to ongoing parts supply issues.

New car sales in May were down 31% from 2021 among automaker reports for the month.

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FOX Business’ Gary Gastelu contributed to this report.