Retail sales of new passenger cars in the U.S. will fall at the end of December, analysts predicted JD Power-LMC Automotive. High car prices and rising interest rates on loans are to blame, forcing Americans to save on big purchases. According to the report, the monthly loan payment for a new car in December was $718, up $47 from the same month in 2021.

Experts predicted U.S. retail sales of new cars in December to be about 1.04 million units, down 2.8 percent from last year. However, if wholesale purchases are also included in the forecast, the market will show growth, with 1.25 million vehicles sold, a 5.3 percent increase from December 2021.

Despite the current problems in auto retail, analysts expect 2023 to bring an increase in sales due to an increase in car inventories. Now, with manufacturers still struggling with component shortages, many models remain in short supply and long lines are lining up for them.

As for global sales, they will be about 80.7 million units by the end of the year, a decrease of one percent compared to 2021. However, even here, analysts look positively into the future: in 2023, the market will grow by six percent to 85.7 million units, despite the recession threatening many markets.