General Motors said on Monday that its new-vehicle sales rose 18 percent in the first three months of the year, thanks to improved supplies of key components and firm demand from both consumers and commercial customers.
The automakers sold 603,208 cars and trucks from January to March, an increase from 512,846 in the same period of 2022.
The gain comes despite steady interest rate increases in the last 12 months that have raised the cost of financing purchases of new vehicles.
But analysts question whether the industry can maintain its sales momentum throughout 2023 given the tougher lending terms.
Jonathan Smoke, chief economist at the market researcher Cox Automotive, said higher rates were starting to put new vehicles out of reach of buyers with lower incomes or weaker credit scores.
Borrowers with weaker credit profiles now make up just under 6 percent of all new-car purchases, down from 18 percent five years ago, according to Cox. Car buyers now pay an average interest rate of 8.95 percent, up from 5.66 percent in March 2022, and the average monthly payment on new vehicles is $784, and the average purchase price $48,763.
“Affordability challenges are limiting access to the vehicle market,” Mr. Smoke said. “Higher interest rates are having a huge impact.”
