√Drop in sales of showroom bows points to market slowdown in the US

New-car sales could be on the brink of a slowdown, if declining sales of showroom bows are any indication.

The radical plan to sell new cars at shopping centres and airports

A drop in sales of car showroom bows has some experts in the US fearing a market downturn is imminent.

The giant bows are typically bought by showrooms and placed on vehicles during customer handovers – as well as by family members surprising loved-ones with a new car – with new owners posting a photo on social media to celebrate the occasion.

At dealerships, the magnetic bows are then reused for the next customer’s new-car delivery

A sudden slowdown in demand for the car showroom decorations has some analysts concerned the brakes are about to be applied to vehicle sales in the US.

A report by the Wall Street Journal (spotted by Carscoops), has revealed sales at Californian business King Sized Bows were down by 35 per cent during the Christmas period, while Car Bow Store in the US state of Pennsylvania also claims sales were down in 2022.

However, another business in Iowa says the holiday season has prompted a 40 per cent increase in car bow sales.

While these figures by no means constitute scientific analysis, it has prompted some analysts to believe car dealers are tightening their belts – or the market could be slowing down.

In Australia, the most recent figures from the Federal Chamber of Automotive Industries show 993,509 new cars have been reported as sold in the 11 months to the end of November 2022 – a modest increase of 2.3 per cent compared to the same period in 2021.

Despite repeated interest rate rises, the Reserve Bank of Australia hasn’t been as aggressive as the US Federal Reserve in increasing rates in recent times.

This has led some industry analysts to predict a less severe slowdown in Australia, if at all.

As this article was published, most major brands in Australia were still quoting waiting times of six to 12 months for popular models.

The post Drop in sales of showroom bows points to market slowdown in the US appeared first on Drive.