Area unemployment rate was near 4% at the end of 2023, total employment increased, and household incomes have moved higher, all positive factors for the new vehicle market.
Rising interest rates and tight vehicle supplies resulting in higher prices put a squeeze on affordability in 2022 and the first half of last year, but the pendulum is swinging back. Interest rates are predicted to ease this year, transaction prices are drifting lower, and income growth has been positive.
Pent up demand is the biggest positive for the area market. Auto Outlook estimates that nearly 140,000 new vehicle purchases have been postponed since the onset of the pandemic and ensuing supply chain issues.
Find out more the latest edition of Chicago Auto Outlook: Chicago Auto Outlook - Q4 2023.
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