A slight rise in interest rates from extreme lows will affect everything from auto and dealer floorplan loans to long-term debt for automakers and suppliers. But that should be only a modest challenge to an industry that has already proved its resilience.
Dealers can expect some customer resistance as rising interest rates push monthly payments higher on car loans and leases. And auto marketers face adjustments.
Unusually low interest rates have turned 0 percent financing deals into the least expensive incentives and trimmed lease payments. Marketers may need new arrows in their quivers.
But the industry can handle the change simply by maintaining the discipline it has shown in recent years.