Karl Brauer, iSeeCars.com executive analyst, joins Brad Smith on Wealth! to discuss the state of the market for car buyers amid macro uncertainty with the upcoming election and the Federal Reserve's easing cycle and how luxury automakers are coming out on top compared to their standard counterparts.

“There's a lot of macroeconomic factors, everything from inflation, which has reduced consumer spending power to interest rates, which has made cars more expensive to finance, just like houses. And we've seen the rates coming down, that should help a little bit,” Brauer says.

He explains, “We're going to need to see some confidence in the future. I think a lot of people are waiting for a rather big event about a month from now to see what happens there. So I think there's a lot of people kind of waiting on hold right now to make any big moves. And that's what you're seeing in these dropping new and used car sales activity. Hopefully, that will get turned around.”

Not all automakers are feeling the pressure the same with luxury brands faring better than their standard counterparts. The analyst says, “The luxury side has done better because those consumers aren't as concerned about their financial situation.” He highlights the Korean luxury brand Genesis, owned by Hyundai (HYMTF), which hit record-high sales. Brauer adds, “We're seeing that in general across the luxury divisions. It's tougher for the mainstream brands because the mainstream buyer is a little more hesitant right now.”

For more expert insight and the latest market action, click here to watch this full episode of Wealth!

This post was written by Naomi Buchanan.