Retail sales for both new and used vehicles continued to show strength into early September, maintaining the momentum from August despite challenges in financing. Auto loan rates rose noticeably, averaging 14.12% for used vehicles and 9.43% for new ones, while low-interest rate offerings have diminished. Vehicle supply remains constrained, with new inventory declining over the past two weeks and used supply still lower than in prior years. Pricing trends are relatively stable, with used vehicle values drifting slightly downward—2022 model retail prices fell 0.1% and wholesale prices 0.2% last week.

Consumer spending has held steady, reflecting economic resilience through July and August, though sentiment dipped by 2.9% so far in September amid rising costs and uncertainty. Dealer activity has been mixed: Autotrader and Kelley Blue Book show year-over-year gains in leads but declines compared to August, while Dealer.com reported stronger used vehicle leads but weaker new ones. Credit applications rose 6% year over year on Dealertrack last week, though new loan applications trended downward. Service activity on Xtime has held mostly stable, with completed appointments down 2% from last year. Overall, the market remains resilient, though financing challenges, declining consumer sentiment, and ongoing inventory constraints may weigh on momentum moving forward.