The soured outlook on vehicle sales is no longer because of supply issues. Car dealers are worried about the impact of high borrowing costs and a recession will have on vehicle demand, according to a recent survey. 

Of the franchised and independent dealer respondents, 55% said the economy, and 53% said interest rates were the top two factors holding back business, the Cox Automotive survey said. Independent dealers selling used cars only had a more negative outlook of the market for the months ahead.

“Our latest dealer sentiment index clearly illustrates how the market has shifted in the past year,” Cox Automotive Chief Economist Jonathan Smoke said. “The new-vehicle market’s most acute inventory issues are in the rearview mirror now. Dealers are now facing an uncertain economy and high loan rates that are keeping many would-be buyers on the sidelines.”

If you are looking to save money on your car costs, you could consider changing your auto insurance provider to get a lower monthly rate. Visit Credible to shop around and find your personalized premium without affecting your credit score.

THESE TWO FACTORS COULD BE DRIVING YOUR CAR INSURANCE COSTS UP

The drag on vehicle demand could push some dealers to lower the sticker price on cars, according to the survey. Both franchised and independent dealer respondents said they felt pressured to lower prices to stimulate sales. 

Although the price pressure index dropped slightly to 58 in the second quarter, it remained well above the 41 registered a year ago when interest rates were lower and inventory was tighter. Most dealers felt less pressure to lower prices, as a result, according to the survey. 

Dealers also said they felt better about the new vehicle market than used vehicle sales. They rated the new vehicle sales environment at 58, up from 52 one year ago. The used vehicle market was rated 42, down from 47 a year ago and near an all-time low. 

One way to save on auto costs is to lower your car insurance rates. If you are shopping for new auto insurance, you can use the Credible marketplace to compare multiple providers and find your personalized rate in minutes without affecting your credit score.

MORE STUDENTS TURNING TO FEDERAL AND PRIVATE STUDENT LOANS TO FINANCE COLLEGE: SURVEY

Even with lower prices might, consumers might still struggle with access to credit, according to the survey.

The Federal Reserve raised rates 10 times in 2022 and 2023 to bring inflation down to a 2% target, raising rates by another 25 basis points at its May meeting. The strict monetary policy has pushed borrowing rates higher and driven banks to tighten lending criteria, which has presented another challenge for dealers this year.

The lack of credit availability for consumers increased significantly quarter over, with 30% of dealers citing this as a challenge in the second quarter, compared to 26% in the previous quarter and only 17% last year, according to the survey,

“Given an uncertain economic outlook and the Federal Reserve likely to tighten monetary conditions further, auto loan credit availability is more likely to worsen than improve in 2023,” Cox Automotive said in a second survey. “In addition to the Fed increasing rates, concerns about stability in the banking sector are leading more broadly to tighter credit conditions. 

“Lenders are also likely to tighten standards if loan performance continues to deteriorate,” the survey said. “The biggest worry for credit access would be in the case of a recession unfolding, in which we would expect to see credit tighten substantially as job losses always lead to higher loan defaults.”

If you are struggling with rising prices and want to save money, you could consider finding a new auto insurance provider to lower your monthly premium. Visit Credible to compare multiple car insurance providers at once and choose the one with the best rate for you.

HOMEBUYERS ARE FINDING BETTER DEALS IN THESE CITIES, SURVEY SAYS

Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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New York City has joined a growing number of state and federal agencies to ban TikTok on government devices due to security concerns posed by the Chinese-owned app. 

The city’s Cyber Command concluded TikTok, owned by the Chinese company ByteDance, “posed a security threat to the city’s technical networks,” the New York Times reported. 

Wednesday’s announcement means city agencies have 30 days to remove the app and employees will lose access to TikTok and its website from city-owned devices and networks.

The TikTok accounts for New York City Mayor Eric Adams, the city’s Department of Sanitation and the Department of Parks and Recreation now have updated bios reading, “This account was operated by NYC until August 2023. It’s no longer monitored.” The NYC Department of Sanitation, in particular, had amassed nearly 50,000 followers on TikTok, gaining popularity over its memes and trash collecting content. 

FBI DIRECTOR CHRIS WRAY TESTIFIES CHINESE-OWNED TIKTOK HAS POWER TO ‘DRIVE NARRATIVES,’ ‘DIVIDE AMERICANS’

Last year, Jessica Tisch, the city’s sanitation commissioner, went viral on TikTok in declaring, “The rats are absolutely going to hate this announcement. But the rats don’t run this city, we do,” the Times reported. 

Fox News Digital reached out to City Hall for comment. 

TikTok has been banned on New York State-issued mobile devices for about three years with some exceptions. However, the TikTok account, @NYGov, the official account for the state of New York, remains active with nearly 40,000 followers. It posted as recently as Wednesday in sharing a clip of New York Gov. Kathy Hochul’s recent press conference speaking of the appointment of Judge Seth Marnin. 

The post was captioned, “As trans rights are under attack across the country, New York is building a judiciary that represents all of our residents.” 

Former President Trump first proposed in 2020 banning new downloads of TikTok, but a series of court decisions blocked the move. The app has since grown to be used by more than 150 million Americans. 

MONTANA ATTORNEY GENERAL STANDS BY TIKTOK BAN DESPITE LAWSUITS: ‘SPYING TOOL FOR THE CHINESE COMMUNIST PARTY’

FBI Director Christopher Wray and CIA Director William Burns have both come out against the platform. Wray testified before Congress in March that TikTok wields the power to “drive narratives” and “divide Americans against each other.” Wray explained that while TikTok is owned by ByteDance, an ostensibly private company, this makes no difference under Chinese Communist Party rule, as the government can still use the platform for data operations. 

Wray also testified before the Senate Intelligence Committee that the Chinese government could use TikTok to control software on millions of devices. 

TikTok has insisted that it “has not shared, and would not share, U.S. user data with the Chinese government, and has taken substantial measures to protect the privacy and security of TikTok users,” Reuters reported. 

Montana became the first state to ban TikTok outright.

The law, which is to take effect Jan. 1, is facing legal challenges – including from TikTok – on First Amendment grounds. 

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Montana Attorney General Austin Knudsen, however, previously told Fox News that he is “not interested in recognizing that the Chinese Communist Party has free speech rights under the U.S. Constitution,”

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In a preview of the 45th U.S. President Donald Trump’s exclusive sit-down interview with FOX Business’ Larry Kudlow, the Republican front-runner addressed a range of top economic issues.

“Our country is going to hell and we’re not going to be the big boy,” Trump said. “We have power, but it’s waning. In fact, it’s waning in terms of our currency. And I’m not just talking about the value of our currency, I’m talking about our currency being used throughout the world.”

The former president confirmed to Kudlow that the U.S. dollar’s windfall as the world’s reserve currency is “bigger than losing any war.”

“You look at our airports, you look at our terminals, you look at our filthy roads and broken roads and everything else, we’re like a Third World country,” Trump noted.

STUART VARNEY: TRUMP’S GEORGIA INDICTMENT SETS UP AN ‘EXTRAORDINARY SITUATION’

“We have something that’s very powerful and that’s our dollar,” he added. “But you take a look at what’s happening to it now with other countries not using it, and you know China wants to replace it with the Yuan, and it was unthinkable with us. Unthinkable. Would never have happened. Now people are thinking about it.”

When it comes to a declining economy and rising cost of living, the ex-president and 2024 candidate put the onus on energy policy.

“Inflation was caused, in my opinion, by energy, because it’s so big,” Trump said. “It’s like all encompassing, everything. You make donuts in the ovens and the trucks that deliver them, and no matter what you do, it’s so much about energy.”

Seeing the Biden administration’s moratorium on federal land and offshore oil drilling was reportedly “so sad” for Trump.

“They cut it off, and again, we were drilling much more. We were a bigger force than Russia and Saudi Arabia individually,” he continued. “In a year and a half, we would have been a bigger force than them combined and we would have made so much money. We would have been paying off debt, we would have been doing things that nobody’s ever seen this country do.”

Trump also indicated he’s aiming to bring “common sense” back into the White House.

“We have a lot of common sense, and the problem is, they don’t have common sense,” the former president said. “They don’t know what they’re doing and they’re destroying our country. We’ll turn it around fast.”

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According to a new Fox News national survey, the former president maintains a large lead in the Republican presidential primary contest, with 53% of voters preferring Trump.

The 45th president’s full interview will air on “Kudlow” Thursday, August 17 at 4 p.m. EST on FOX Business.

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