Ford Motor has cut its 2017 pre - tax profit forecast for its finance department by $ 300 m , the latest sign that rising used - car prices are hitting the US auto sector . As we have noted , used car prices have been dropping as lend - lease vehicles flood the market , creating a glut . Ford 's finance chief Bob Shanks warned the slide is spreading beyond small cars and crossovers , which are already suffering from a slump in sales , to larger pickup trucks and SUVs , and car buyers , as evidenced by results from polls last week . At the same time , there are concerns that an anticipated increase in US interest rates will push up auto loan prices .
Ford Motor has cut its 2017 pre-tax profit forecast for its finance arm by $300m, the latest sign that falling used-car prices are hitting the US auto sector. As we have noted, used car prices have been dropping as ex-lease vehicles flood the market, creating a glut. Ford's finance chief Bob Shanks warned the slide is spreading beyond small cars and crossovers, which are already suffering from a slump in sales, to larger pickup trucks and SUVs, and car rentals, as revealed by results from Hertz last week. At the same time, there are concerns that an anticipated increase in US interest rates could push up auto loan deficiencies.