David Thomas is director of content marketing and automotive industry analyst at CDK Global. He champions thought leadership across all platforms, connecting CDK’s vast expertise to the broader market and trends driving our industry forward. David has spent nearly 20 years in the automotive world as a product evaluator, journalist and marketer for brands like Autoblog, Cars.com, Nissan and Harley-Davidson.
Inventories are rising and the lots almost look back to normal at many dealerships. These conditions helped lift the CDK Global Ease of Purchase score to 84% in May, one of our highest recorded. But just as the industry is overcoming one issue, another is lurking behind it. High interest rates have been an issue for months, especially for shoppers who want affordable options.
Interest rates have tripled compared to last April. Yes, you read that right. Car loan interest rates are now near 7%, up from the low twos in 2022 making cars less affordable and causing pain for many car shoppers. However, sales were strong in April — up by nearly 6% according to some estimates — and in our latest Ease of Purchase survey 83% of buyers found the process easy, up from 81% in March.
The slight uptick follows two factors that also saw positive change in April.
