When interest rates increase, borrowing becomes more expensive. This includes not only loans for big-ticket items like homes but also financing for vehicles. The cost of financing a car or other forms of transportation increases with the increase of interest rates. As a result, potential buyers might reconsider purchasing a vehicle or delay their plans, leading to a decrease in demand for transportation. This reduction in demand can affect the automotive and transportation industries, leading to slower sales and potentially impacting economic growth within that sector.
Have higher interest rates influenced your choice to buy a vehicle or use alternative transportation options? We’d love to hear your experiences.
