Cars Commerce released its Industry Insights Report, which examines the market in the first half of the year. Rebecca Lindland, Senior Director of Industry Data and Insights at Cars Commerce, joins us on the latest episode of CBT Now to discuss the findings.
Key Takeaways
1. The average price of new cars has surged to nearly $49,000, and used vehicles have also seen significant price hikes. This sticker shock is affecting consumer behavior and their ability to afford vehicles, leading to concerns across the industry.
2. High interest rates are exacerbating the affordability issue, with consumers facing tough decisions when financing vehicles. Extended financing terms (72 to 84 months) are becoming the norm, but they come with the risk of consumers becoming “underwater” on their loans.
3. Despite the slowdown in the anticipated EV revolution, consumer interest in electric vehicles has skyrocketed, with searches on Cars.com up by 930% over the past five years. The availability of EVs on dealer lots is a game-changer, allowing consumers to test drive and select their preferred models.
4. The importance of knowledgeable sales associates and BDC (Business Development Center) personnel is emphasized, particularly in EV sales. Dealers are urged to ensure their teams are well-versed in the benefits of EVs to effectively communicate with consumers.
5. Lindland highlights the significance of local incentives for EV ownership, such as rebates for installing home chargers. Dealers are encouraged to stay informed about these local programs to better assist customers in making informed decisions.
"At the end of the day, one of the positives that we see is that we are seeing improving choices and inventory at dealer lots... but it's just going to be more expensive than they may have encountered in the past." - Rebecca Lindland.
