CBT News’ Post

New Vehicle Sales Reach Post-Pandemic Highs: What This Means for Dealership Owners and Valuations New data from Cox Automotive Inc. reveals that new vehicle sales have reached their highest monthly rate since the pandemic, with November's Seasonally Adjusted Annual Rate (SAAR) hitting 16.5 million. This marks the highest SAAR since May 2021, which had a monthly SAAR of 17.0 million. This resurgence signals that the improvements in new vehicle affordability, as highlighted in our Q3 2024 Haig Report®, are finally translating into higher sales volumes—a development that has significant implications for dealership values. https://hubs.la/Q030fWNC0

🚗📈 Exciting Update from Cox Automotive! 📈🚗 In their latest forecast for August 2024, Cox Automotive Inc. is projecting some intriguing shifts in the U.S. auto sales landscape. According to their report, we're seeing a mix of strong demand for both new and used vehicles, coupled with a steady recovery in inventory levels. Key highlights include: - New Vehicle Sales: A notable uptick is anticipated, driven by continued consumer interest and new model releases. - Used Vehicle Market: Despite supply chain challenges, the used car market remains robust with resilient prices. - Inventory Trends: Improvement in inventory levels is expected to ease some pressure and offer more choices for buyers. This forecast underscores a dynamic period for the automotive industry, with opportunities for growth and adaptation on the horizon. It’s a great time to stay informed and agile in this ever-evolving market! #AutoIndustry #CoxAutomotive #MarketTrends #AutomotiveForecast #CarSales #IndustryInsights

[NEWS] New car sales are hitting a speed bump: Q3 has been eventful… we’ve seen cyberattacks, Federal interest rate cuts, and a crazy election cycle. In short, uncertainty is impacting new vehicle demand— So what’s the damage? Analysts predict Q3 sales will hit 3.9 million units, down 2.3% from last year. And Sept. sales are expected to be especially weak–down 11% YoY. Part of the reason? A calendar quirk. Sept. had 5 fewer selling days in Aug. But combining sales for these 2 months tells us a more encouraging story – sales are actually up about 2.6% YoY. Yet — at the end of the day — many car buyers are stalled and still waiting for better new car market conditions that could be coming down the pipeline. Read today’s top automotive stories, presented by Anyline: https://lnkd.in/g6dQG2ZT (Data source: Edmunds / Cox Automotive / J.D. Power)

🚗 The U.S. auto sales outlook for the second half of 2024 suggests a shift in momentum, with expected growth slowing to approximately 15.7 million units, a modest 1.3% increase from last year. This comes amidst rising vehicle inventory levels, increased incentives, and broader economic uncertainties, including fluctuating interest rates and the upcoming presidential election. For OEMs and automotive dealers, these developments pose challenges in maintaining recent sales successes. Explore the full analysis and implications for the industry's dynamics here: https://lnkd.in/gDhsiQqE #AutoIndustry #USAutoSales #EconomicOutlook #OEM #AutomotiveIndustry #Automotive #Dealer #Dealership

USA ■ September Car Sales Projected Down 13%! The number of new cars sold in the U.S. in September 2024 is expected to be less than in September 2023. J.D. Power and GlobalData projected in their joint September forecast that retail and non-retail new vehicle purchases for September 2024 would be 960,500, down 13.2 percent from September 2023's numbers (1,129,659 units). September sales are expected to be down in large part due to the timing of Labor Day weekend. Auto sales calendars do not follow traditional standards of measurement from Sunday through Saturday, first of the month through the last day of the month. Rather, they look at selling days. Car dealerships are usually closed at least one day a week, meaning that there are fewer than 28 to 31 selling days per month. September 2024 had 23 selling days. September 2023 had 26. When adjusted for the number of selling days, September 2024 car sales are projected to have been just 1.8 percent less than September 2023's numbers. "September sales volumes will be lower than a year ago because of a calendar quirk that saw the Labor Day holiday weekend fall into the August sales month. This boosted August's sales but will diminish September's sales from a year ago," Thomas King, president of data and analytics at J.D. Power said in a press release. #JDPower #Automotive #Autonews

Going from 0 to 60 but still moving at a snail's pace. If you're in the market for a new car, you may want to wait until the fall. Growing uncertainty around the economy, high interest rates, and a mess of a presidential election will dampen U.S. auto sales during the second half of 2024. Zoom, zoom, zoom...not so fast. Consumer sentiment has been on a roller coaster ride the past few months thanks to nauseating inflationary pressures, and that's already impacting big ticket sales. Nothing is as big a ticket as auto sales, and automakers and dealers alike will need plenty of Dramamine to navigate a tumultuous Q3 and Q4. Can you at least throw in the pine scent air freshener? It's quite a change of events since the pandemic and the early days afterwards where automobile inventory was in the doldrums because of supply chain issues and chip shortages. Remember the days when new cars were selling 20-30% over sticker? And that was when you could find available ones. Even used cars were selling at what would be typically new car prices. The seller's market is running on empty. Auto dealers today are seeing inventories swell, and for buyers, the incentives are as well. That's a big shift for buyers who have been waiting years for prices to come down. The challenge or irony if you will is whether buyers feel confident enough to actually make the purchase given the state of things. Of the challenges facing consumers are the high interest rates and inflation. With the 'will they or won't they' Fed continuing to dangle the carrot of lowering rates, consumers may decide to wait which would be bad news for the economy. For automobile industry, that's creating a lot of unnecessary sputtering https://cnb.cx/4eOvi7M #automotiveindustry #automobiles #inflation #economy #presidentialelection #interestrates #consumers

🚗💨 The holiday season is here, and it’s time to ramp up your vehicle sales! Check out our latest blog to discover how a streamlined credit workflow will keep your dealership moving at top speed: https://bit.ly/3CNJ63R ✨ With shoppers ready to buy, now’s the time to make every deal count. Don’t let an outdated process slow you down! #AutoSales #HolidaySeason #DealershipTips #CreditCompliance

This is a relevant piece of information that was ignored by most analysts today: According to Wards Automotive, August annualized #US new car sales came in at 15.13 million (seasonally adjusted), down from 15.82 million in July, and significantly lower compared to the market consensus forecast of the annualized rate of sales coming at 15.4 million. This performance implies a sequential retrenchment of 4.36% in total new car sales, the most significant fall seen since January of this year. According to my forecasting model, based on this performance 2024 will likely end seeing the annual rate of car sales falling some 6% y/y (December 2024). And looking at 2025 as a whole, the model is estimating that sales should fall an additional 3.4% y/y, with sales falling 5.5% y/y in December 2025 --see graph.

"Sales of new cars and trucks rose in November to the highest level in three-and-a-half years, helped by bigger incentives for car buyers as dealers sought to clear out excess inventories. U.S. automobile sales rose at an annual rate of 16.5 million last month from a revised 16.3 million in October, according to Ward’s Intelligence. That’s the highest level since the spring of 2021. The figure reflects how many new cars would be sold in the entire year if the same number were purchased each month as were sold in November. High interest rates and high prices have depressed auto sales for the past few years and left them well below a record 17.5 million sales in 2016."