Monthly

Monthly Car Sales Can Keep Going Strong. So Can Car Stocks.

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New Subaru cars parked on a storage lot in California.


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Investors will get another number after Wednesday’s close that they should consider acting on—monthly U.S. auto sales.

May’s number will be solid if the figure from April is any indication. April’s total for light vehicles—monthly sales are reported as a seasonally adjusted annual rate, or SAAR—came in at 18.5 million, the highest reading since 2005, according to data available on Bloomberg.

That level shows demand is strong, despite a worldwide automotive semiconductor shortage that is limiting the supply of new vehicles—and driving car prices higher. In turn, the higher prices are pushing up auto stocks, a dynamic that can last longer than investors might expect.

Constrained production caused by the chip shortage, along with rising prices for commodities used in cars, sound like a recipe for stock market disaster. The cost of copper,

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Monthly car payments near $600 as SUV and truck sales surge: Experian

The average monthly car loan payments are on the rise, surging upwards of $600, as an increasing number of consumers switch back to financing new vehicles, according to Experian’s latest auto financing report.

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During the last three months of the 2020 fiscal year, consumers borrowed almost $2,000 more for new vehicles, spending on average $35,228, according to Experian’s State of the Automotive Finance Market report.

This pushed their monthly bill from about $13 to upwards of $576 during that period, according to Experian.

“The events of 2020 disrupted the automotive industry and we’ve seen some consumers shift away from patterns that have been cemented over previous quarters such as opting for used vehicles,” Experian senior director of automotive financial solutions Melinda Zabritski, said.

This change can be attributed

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