The government shutdown is eroding consumer confidence in the auto market, says John Krafcik, CEO of Hyundai's US sales unit, and could lower October sales by as much as 10 percent, Automotive News reports. "It's that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile," Krafcik says, adding that industry sales could be off by five to 10 percent in October compared to September.

The fourth quarter, which started October 1, usually consists of increased auto sales as dealerships clear their lots to make room for the next year's models. Leading up to the fourth quarter this year, the auto industry was doing well in the fragile, recovering US economy, although September deliveries decreased by 4.2 percent, due in part to this year's Labor Day sales being recorded for August.

To help its customers, Hyundai announced it is deferring new-car loan and lease payments for furloughed federal workers until they're called back to work and also offering them a three-month payment deferral if they buy a new Hyundai in October. "We have already had requests from over a thousand people to have their payments deferred," Krafcik says.

Toyota and Nissan joined Hyundai as the latest automakers to provide financial relief to customers affected by the federal employee furloughs.


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  • 31 Comments
      • 1 Year Ago
      [blocked]
      Sanchez
      • 1 Year Ago
      This may be the first really bad news I've heard related to Harry Reid's shutdown, aside from attempts to make it as noticeable as possible by closing open-air monuments and state-owned roads near federal landmarks. Anyone else remember the predictions from the left that the sequester would have a big impact? Yeah...didn't think so.
      Zoom
      • 1 Year Ago
      Good job TeaBa@@ers! Economic ruin here we come!
        Nathan
        • 1 Year Ago
        @Zoom
        I think a government $17T in debt with no possibility of repayment other than massive inflation or writeoffs is already considered economic ruin by most metrics other than .gov's.
          edward.stallings
          • 1 Year Ago
          @Nathan
          Don't go pointing out the elephant in the room. Very few people here can see it and they want to remain unaware.
          Mobis21
          • 1 Year Ago
          @Nathan
          Nathan do you actually believe the debt is the real reason why the Tea party lunatics shut down the government? Really?
          Jarda
          • 1 Year Ago
          @Nathan
          No no no! It's all TeaParty's fault! /tantrum
        Bernard
        • 1 Year Ago
        @Zoom
        These douche baggers need to go.
      ragtopdodge
      • 1 Year Ago
      Teabaggers are hellbent on destroying their country to make a point. Think those congressman should be hanged for treason.
        knightrider_6
        • 1 Year Ago
        @ragtopdodge
        @ragtopdodge That's a little extreme. We should not stoop to the level of these Tea Party traitors. How about we deport all of them to Somalia. Somalia is perfect for them - no taxes, no roads, no health care, rampant poverty, high gun ownership - everything these teabaggers want.
        Pinhead
        • 1 Year Ago
        @ragtopdodge
        Agree - TeaTards made a deliberate decision to cause the shutdown, so they should own their decision. After all, they believe in taking responsibility for ones actions, right?
        • 1 Year Ago
        @ragtopdodge
        [blocked]
      knightrider_6
      • 1 Year Ago
      Can you imagine - if Texas has succeeded from US, Ted Cruz wouldn't be in the US senate. His crazy communist policies would be restricted to the backward state. I should have signed the petition when I had a chance.
      knightrider_6
      • 1 Year Ago
      Meanwhile Mitt Romney is building a mansion with 14 car garage, including a car elevator with the money he made from his 2012 campaign. This guy is brilliant!
      knightrider_6
      • 1 Year Ago
      How was "Gravity"? Ted Cruz says watching govt workers die makes it the feel good movie of the fall
      L1011
      • 1 Year Ago
      Or....people aren't buying Hyundai's because their swoopy styling is growing older by the day? Or....people aren't liking the annoying "what kind of..." commercials you're running to promote the monstrosity known as the Equus. Blaming a 10% drop in sales on the government shutdown is a poor excuse. Sorry, I'm not buying it.
        reattadudes
        • 1 Year Ago
        @L1011
        since the government shutdown began on October 2, my business has dropped by 82%, and I don't sell Hyundais, or any kind of car for that matter. normal day on October 1; on October 2, the phones stopped ringing, and email requests dropped from 150 per day to less than 20. other business owners I know have reported the same thing. perhaps instead of making sophomoric comments about Hyundai, you might want to ask business owners or auto dealerships how "good" business has been since the shutdown. the 10% drop Krafcik reports is really on the low side. it has nothing to do with the shutdown just affecting government workers, but everyday Americans being scared to death of the catastrophic results of a default. when Americans are scared, any unnecessary buying comes to a halt.
        whatamooseiam
        • 1 Year Ago
        @L1011
        Nice try, L1011 (or mary or all your other aliases). He's talking about the industry as a whole.
      Radioactive Flea
      • 1 Year Ago
      I should have bought a car two years ago. I am milking it along, afraid to buy because of the political instability. I am waiting till 2015 now. I'll reassess it then. Hopefully the teabaggers will be gone.
        Jake
        • 1 Year Ago
        @Radioactive Flea
        If you're so dependent on our corrupt broke government that it is affecting your purchasing decisions, it may be time to re-evaluate your life.
          icemilkcoffee
          • 1 Year Ago
          @Jake
          Do you drive on the streets? Do you fly out of airports? Do you go to the national parks? Do you eat meat? Do you take medicines? Do you use GPS? Do you drink water? Do you use a toilet connected to the sewers? Do your kids go to a government schools as over 95% of children do? Did you or do your kids go to a public university? Government is central to every faucet of our lives.
        wilkegm
        • 1 Year Ago
        @Radioactive Flea
        Beause smaller gov't would hurt your car buying?
      flammablewater
      • 1 Year Ago
      I think every headline should just be "government shutdown is ruining everything for no reason"
      flammablewater
      • 1 Year Ago
      It's over! We can go back to talking about cars again.
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