Good morning, |
Welcome to Topmarq Dealer Weekly, your snapshot of industry news and happenings. Let's check out: the ups and downs of the used car market, KBB's interesting look at Q1, and the latest news from Lexus and VW. |
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Cheers! |
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Market at a Glance |
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The most recent used car pricing data from cargurus.com reveal a modest jump in prices. The typical transaction is $30,788, a $56 gain from last week (a 1.51% rise over the past month); not enough to pay for a tank of gas these days. We've also been watching how certain brands do in the second-hand market. Several have had a 2% or greater increase in transaction values during the last 30 days. |
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With an extended wait for new models, it's no wonder used Tesla pricing is rising. But, the jump in pricing for meh brands (when it comes to new sales) means used car buyers are searching for value wherever it can be found. |
Q1 Auto Sales Wrap Up from Kelley Blue Book |
The folks at Cox Automotive's Kelley Blue Book gathered their top ten takeaways from U.S. new car sales from the first quarter of 2022. It's an insightful and quick read worth checking out. Our favorites: |
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We also have to mention the sad state of Fiat in the U.S. The Stellantis brand sold only 340 cars in Q1, a number bested by start-ups Lucid and Rivian. |
Lexus' First Attempt To Take On Tesla |
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As we've said before, we're not here for new car reviews (there are a gazillion sources for those). So, when we report on a vehicle launch, it's to call attention to what this product means to the marketplace. |
A case in point is Lexus and its first all-electric offering, the 2023 RZ 450e . Sure, it looks like Darth Vader and a Transformer had a child, but this EV clearly is a shot across the bow of the Tesla juggernaut. Lexus is keeping its fingers crossed that it can tap into the red-hot demand for the Model Y. And it may succeed if Tesla doesn't reduce the six- to nine-month backlog currently in place for its eSUV. On the other hand, the RZ's disappointing 225-mile range is no better than what the now-ancient Nissan Leaf offers. It’s a tradeoff from sharing a platform with the upcoming Toyota BZ4X and Subaru Solterra. |
VW Dials Back Globalization |
It wasn't too long ago that Volkswagen proclaimed it would become the world's largest automaker. But the executives in Wolfsburg didn't plan on Dieselgate, a global pandemic, a topsy-turvy supply chain, and a war in Europe. An eye-opening 37% drop in March deliveries (compared to 2021) was likely the final push that VW needed to rethink its interlinked global functions. |
The company announced earlier this week that it's granting more independence to regional operations and specific brands. "The latest geopolitical changes and increased block-building have been exposing our global vulnerability, particularly with regards to the U.S.," CEO Herbert Diess wrote in a LinkedIn post. |
VW will announce more details in the coming weeks. But, a read between the lines means the company is insulating itself against further disruptions (especially regarding China, which makes up 40% of VW sales). |
Dealer Essentials |
Prison For Manager Who Embezzled $300K From Hyundai Dealership |
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