DETROIT (AP) -- U.S. new vehicle sales fell slightly in the third quarter, even though some automakers reported improvement in September. But there are warning signs consumers' appetite for expensive new cars, trucks and SUVs may be waning.
Edmunds.com said Monday that sales fell 0.9 percent from July through September, with most automakers reporting declines. General Motors was a notable exception, logging a big increase.
Many companies, including GM, said sales rose in September as shortages of computer chips and other parts started to ease and auto factories were able to produce more, increasing vehicle supplies. But analysts said any monthly gain may be short lived due to high prices and rising interest rates.
"With increasing interest rates, affordability is being tested," Zack Krelle, an industry analyst at TrueCar. "We're seeing consumers faced with the reality that to afford the same vehicle at the same monthly payment as last year, they are forced to increase their down payment, which is creating affordability challenges."
Last month, new auto prices averaged $45,622, the fourth-highest monthly price on record, according to J.D. Power. In addition, average auto loan interest rates hit 5.7 percent between July and September, up from 4.3 percent a year ago, with terms stretched to average over 70 months, Edmunds said.
Still, General Motors managed to lead the industry for the quarter, selling more than 555,000 vehicles, a 24 percent increase over last year. The company said it saw improved semiconductor supplies, more stable production and increased inventory on dealer lots.
Honda, which was hit hard during the summer as parts shortages cut shipments to dealers, said September was its best sales month since May as it overcame transportation issues. Still, sales were down 17 percent in September from a year ago, and off 36 percent for the quarter.
Toyota sold 7.1 percent fewer vehicles than in last year's third quarter, and Stellantis, formerly Fiat Chrysler, reported a 6 percent decline, while Nissan was off nearly 23 percent. Hyundai reported a sales increase for the quarter, 3.3 percent, as did Volkswagen, up 12 percent.