Sixty percent of American car shoppers expect the 2024 election to influence how they shop for a new car. However, it won’t affect whether they buy a gas-powered, electric, or hybrid vehicle.
Kelley Blue Book parent company Cox Automotive interviewed more than 500 people currently shopping for a new car and 1,026 new and used car dealers to survey how the upcoming election affects their plans.
Most Say Interest Rates Will Change
Nearly three-quarters of Americans expect the election to influence the economy. Most — 66% of shoppers and 82% of dealers — say they’re watching for interest rates to change after the election.
Interest rates have the current car market in a near-stranglehold. The Federal Reserve has kept interest rates high in an attempt to reel in inflation. High rates have kept many car shoppers delaying purchases and waiting for lower rates.
Dealers can try to lure shoppers by lowering car prices (within reason – they can’t lose money on car sales and stay in business). However, they know monthly payments will remain high as long as interest rates do – meaning some drivers will keep their current car running rather than looking to replace it.
These conditions have left many dealer lots overstocked and dealers worried about their businesses in the near future.
A Change Is Likely Before We Vote
Though many Americans expect interest rates to change after the election, the Fed has signaled that they may change right before it. The bank’s most recent projections said it would begin rate cuts in September.
Inflation is car shoppers’ biggest worry. Seventy-four percent of shoppers and 80% of dealers expect the election to impact inflation.
Shoppers Unclear How Their Plans Will Change
While most say the election will impact their next car purchase, most respondents failed to specify how. Among the group who said the election would affect their plans, 52% said it would not impact whether they buy a luxury or non-luxury car, and 57% said it would not impact whether they buy from a domestic or foreign brand.
Sixty-one percent said the election’s outcome would not affect whether they purchase a gas-powered, electric, or hybrid car. Fifty-four percent of all shoppers opposed government EV mandates – a measure several states have enacted, starting in eleven years.
