Here's the latest edition of
Topmarq Dealer Weekly
for your peek at what's happening in the car business. In this issue, we look at where used car prices are headed, Toyota's production cutbacks, and some less-than-ideal market indicators. There's also some wonderful nostalgia courtesy of Ford.
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Cheers!
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Market At A Glance |
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Retail prices for used cars have taken a slight uptick over the past week, says
CarGurus
; the movement represents a contrast to the flat or declining numbers from recent previous weeks. The average used car now sells for $30,806, compared to $30,770 when we wrote about this data at the beginning of the month. Sure, the $36 increase isn't much, but the new average hovers close to the year's high of $30,828 (from May 10).
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What does this mean? For the moment, there's no break for used car shoppers. And strong prices mean there's less risk for dealers. But this can turn on a dime as we're just feeling the results of higher interest rates and facing uncertain economic times. In congressional testimony,
Federal Reserve Chairman Jerome Powell
just revealed plans to further raise lending costs, which could trigger the "R" word.
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Record SUV Sales Coming to an End?
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Continued record gas prices could also see consumers ditch gas-guzzling SUVs and leave inventory-heavy dealers holding the bag. Keep an eye on used SUV prices as the canary in the coal mine. The average pre-owned ute sells for $39,495, a number that hasn't budged by more than a few hundred dollars over the past few months.
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The market is in flux again and while the industry has held strong so far, it's hard to predict the future. Complete our quick ( < 1 min! ) poll below about how your dealership is handling the uncertainty to see how others are preparing for the future.
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Toyota Cuts July Production Forecast |
Citing continued pains from the semiconductor shortage and COVID-19 shutdowns, Toyota is dropping its July production to 800,000 units, a 50,000 cut from earlier plans. As of this writing, there are no specifics about how the cuts will impact supplies in the U.S., but it certainly won't help. Even the company's just-launched (and made in Japan) bZ4X electric SUV is affected.
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Toyota's production target for the year still stands at 9.7 million units, but few people would take a bet that this is a rock-solid number. Less new product is bad news for Toyota dealers, but used car sellers won't mind if this keeps prices high.
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Cox Automotive Report Shows F&I Drop |
The latest
Auto Market Report
from Cox Automotive is a mixed bag that may require some antacid. Among the most eye-opening results is a 23% year-over-year decrease in same-store credit applications from last week. That's followed by an 8% drop in completed service appointments. We won't spoil all the surprises, so take a few minutes to review the information.
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Enjoy a Ride in Ford's Time Machine |
Even Chevy fans will appreciate the
Ford Heritage Vault
; it's a look through the first 100 years of the Blue Oval's history (1903-2003). The free, publicly accessible site lets users explore sales brochures, memorable images, and other treasures. Check out that Country Squire station wagon that used to haul the family on vacation. Or find out what colors and options were available for the 1968 Mustang. Amateur cultural anthropologists will appreciate exploring how marketing images have changed throughout the decades. Why waste hours on YouTube? Instead, get lost among things like a
36-page brochure from 1909
.
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