Economic Outlook: Source

  • It’s projected that the economy will expand at a modest 1.4% next year and 1.8% in 2025.
  • The Fed is delivering as many as six 25-basis-point rate cuts totaling 150 basis points.
  • Interest rates have a direct effect on consumer behavior, impacting several facets of everyday life as borrowing becomes cheaper, making large purchases on credit more affordable,

 

Wholesale Market Trends: Source: Cox Automotive

  • Wholesale depreciation slowed again this week, with 3-year-old models dropping only 0.1%.
  • Luxury is decreasing at an accelerating rate vs nonluxury.
  • Time to the front line is critical here.

 

EVs and Fixed Ops: Source

  • Your dealers are preparing for POS Cash on the Hood opportunities in January.
    • Expect more interest and traffic in the showroom and more older model EV trades.
    • We must be ready in fixed ops to handle these EVs.
    • KNOW before you LIFT.
  • Most dealers are adding trained technicians or infrastructure, but more is needed.
    • 16 71% have Added Infrastructure to Support Servicing EVs
    • 54% Need More Electrical Trained Staff for EV Servicing
    • 67% Need More Infrastructure for EV Servicing
  • The payoff is an increase in visits according to a recent Cox Automotive Study.
    • Average Service visits of EVs were e16% more than ICE.
    • Average Services per visit of EV over ICE were 20% more.

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