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Many things could disrupt the sale of Toyotas in the United States. The biggest of which may be interest rates. Higher interest rates mean that
Many things could disrupt the sale of Toyotas in the United States. The biggest of which may be interest rates. Higher interest rates mean that cars are more expensive if financed. As of 2019, 85 percent of all cars purchased in the US are financed. (PIRG, n.d.). that means 85 percent of all cars could "price out" customers if interest rates go too high. Likewise, higher interest rates often lower consumer confidence in the economy and deter bigger purchases like cars, especially high end or luxury cars. This could create a supply and demand issue.(UMGC , 2024) The less demand there is for cars, the less are will be in supply. The less cars that are made means less work at car and part factories, marketing, sales, dealerships, financial services offices, and all other parts of the automotive industry. That could mean higher unemployment rates. That being said, lower interest rates are attractive to consumers who are more likely to buy bigger items when interest rates are lower, both because they are easier to afford and because it makes more financial sense
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