Happy Fourth of July Weekend everyone. Before you head off, we look at the conflicting world of used car prices (we're talking about the mismatch between retail and wholesale), how inventory issues aren't a problem for some brands, and right to repair concerns reappear.
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Cheers!
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Market At A Glance |
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A $27 increase in the average price of a used car may not raise any eyebrows until you put things into perspective. According to
CarGurus
, the typical pre-owned vehicle now sells for $30,833, compared to $30,806 last week. The new figure now breaks the previous record ($30,828 from May 10) for what a consumer pays for the average used car. In case your memory has faded about selling cars before the pandemic, the CarGurus Index stood at
$20,877 on March 1, 2020
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For a different take on things, check out
Black Book's look at the wholesale side
. The company's data reports an overall softening of prices, with a few categories showing some strength (like compact cars). There's no need to freak out (yet), as the movement among numerous data points is still in fractions of a percent. But, most of the decline involves the truck and SUV segment (something we first mentioned last week as a potential red flag).
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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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So, for the moment, it doesn't appear that the retail end of the business is being impacted by a modest drop in wholesale prices, rising consumer interest rates, and concerns about a troubled economy. Hang on as we see what happens in the coming weeks.
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Good News For American Auto Brands |
If you sell new products from Ford, GM, or Stellantis, maybe Cox Automotive's latest info on brand availability comes as no surprise. Among the heaps of data in the company's latest
mid-year report
is a look at how the different automakers stack up when it comes to U.S. inventory.
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Domestic brands are clearly in better shape than Asian automakers. Of particular note is that RAM and Dodge have more than 60 days' supply. Has production caught up with demand, or are consumers dialing back their purchases of gas-hungry SUVs and trucks? Buick and Cadillac are showing good supply levels as well. Curiously, Volvo is in the second-highest spot, with about 74 days of availability. At the bottom of the pack are Kia, Honda, Subaru, and Toyota, with 20 days or less supply. Perhaps we're restating the obvious if you're trying to sell one of these brands (we don't mean to pour salt on any wounds).
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Dig further into the report for more supply details, brand sales specifics, and other interesting tidbits.
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Right to Repair Action Picks Up Steam |
Following an inquiry from U.S. Rep. Jan Schakowsky (D-IL), the General Accounting Office (Congress' watchdog agency) has been tasked with revisiting right to repair issues in the automotive sector. Schakowsky wants to know if the industry's self-regulation efforts are sufficient and if increasingly technology-dependent vehicles are changing the landscape for consumers. The concern is that automakers may impose stipulations on who can repair advanced safety systems and other high-tech components. In addition, the issue of OEMs asserting patent rights may limit aftermarket replacement parts.
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The industry-backed Alliance for Automotive Innovation is supportive of the GAO study, citing that the majority (70%) of post-warranty work is done by independent service businesses.
Here's a quick read
on the organization's take on automotive right to repair matters. There are helpful talking points if you encounter the issue in your day-to-day operations. And
check out this article
for a deeper dive from the consumer's point of view.
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