Inside Automotive
How the economic timeframe is shifting the used car market – Karl Brauer
The used car market has seen significant shifts and changes in recent times. With evolving consumer preferences, technological advancements, and changing economic conditions, the used car market is a dynamic and competitive landscape. On today’s Inside Automotive, we’re pleased to welcome Executive Analyst for iSeecars.com, Karl Brauer, to provide his in-depth knowledge of current trends and insights. Watch full segment here.
Top Stories
White House officials believe that Toyota is (quote) “fully committed” to electrification after speaking with company representatives earlier this year. The President’s senior adviser, John Podesta, met with two executives from the automaker’s U.S. branch, who reported that the brand had fully embraced EVs under its new CEO, Koji Sato. Podesta remarked that although Toyota (quote) “had been the laggard” when it came to EVs, the brand’s new leadership was determined to expand its lineup and compete with other major manufacturers. Read More
Honda continued to bounce back from its pandemic-slump throughout April, thanks to stable demand and better inventory. Last month’s sales climbed nearly 25% year-over-year in the U.S. to 116,082 units, driven by record-breaking EV deliveries. This total was slightly behind the 116,746 units sold in March, which was the automaker’s best month since July 2021. Sales of the new 2023 CR-V topped 30,000 for the second month in a row, making it the brand’s best-seller in North America. Read More
The United Auto Workers union is refusing to endorse President Biden’s reelection campaign until the administration responds to several key issues with electrification. In a letter, the UAW’s new leader, Shawn Fain, argued that automakers were taking government subsidies with (quote) “no strings attached and no commitment to workers.” The union chief also noted that the EV transition had resulted in a series of plant closures in Detroit turning the lives of staff (quote) “upside down.” Read More
The Federal Reserve has raised interest rates once more bringing them to the highest levels since 2007, but indicated that further hikes may be unnecessary. On May 3, Fed chair Jerome Powell said the possibility of another adjustment was uncertain, calling it (quote) “an open question.” Consumer prices increased on pace with forecasts during April, which also saw concerning developments in the looming banking crisis. With the Federal Funds Rate now sitting at 5%, it remains to be seen whether inflation will finally cool or if the move will force an economic slowdown. Read More
For Dealers
Strengthening the lease proposition in 2023
Leasing a new car is a great option for many new car shoppers…lower monthly payments, being able to jump into a new car every few years, not dragging out a loan term to 72 or 84 months just to make the payment workable. Who doesn’t love the idea of a new car for a much smaller payment? For many F&I managers, it’s not the ideal scenario for making a healthy PVR. For some, it’s almost as bad as the dreaded ‘cash deal’. Lease terms are generally 24-36 months on average and that makes it harder to sell a VSC since the factory warranty will cover them until turn-in. Read More
Weekly roundup: Toyota commits to EVs, aftermarket service disappoints, Fisker’s EV battery swapping
EV maker Fisker announced its Ocean SUV will come equipped with swappable batteries in 2024, April U.S. auto sales improved year-over-year, customer satisfaction with aftermarket service providers declined, and more headlines to stay on top of this week in automotive industry news. A variant of the Ocean all-electric SUV compatible with battery-swapping technology will be available on the market thanks to a collaboration between California-based EV firm Fisker and Ample. Read More
