When the US economy catches a cold, car sales end up in the emergency room. Recessions are especially tough on auto sales, which typically correlate to credit availability, interest rates and consumer economic sentiment. That may seem obvious, given the auto sector’s impact on the US economy, but this report from Federal Reserve economists Kathleen W. Johnson, Karen M. Pence and Daniel J. Vine offers an intriguingly nuanced look into car buyers’ decision making under various economic conditions. getAbstract recommends this scholarly report to investors and economists seeking insight into the psychology and economics of auto sales.
In this summary, you will learn
- How the 2007–2009 recession affected auto sales and auto loans and
- How factors such as credit scores, education and homeownership affect car-buying habits.
About the Authors
Kathleen W. Johnson, Karen M. Pence and Daniel J. Vine are Federal Reserve economists.