Finance rates used cars are exerting pressure on secondary

Finance rates used cars are exerting pressure on secondary market auctions, which could slow turnover rates for inventory-heavy dealers. This dynamic is being factored into short-term equity performance models. Inventory exists: An estimated ~85,000 new 2024 models remain for sale in late September, far more than last year’s carryover. Imagine you're buying a $20,000 car. You can get an auto loan with a $2,000 down payment and a 7% APR, or a personal loan with no down payment and a 12% APR. The term for each loan is 5 years. Year-to-date data shows finance rates used cars have climbed steadily in tandem with Fed rate hikes, weighing on automotive sector equities. This trend remains a key watchpoint for technical traders monitoring breakout levels.