The Automotive Advisor Team

Economic Update: Source

The labor market tightness index reveals that the US labor market is gradually becoming less tight, despite strong job growth but it’s still tighter than any period in a half-century.

  • People are working and earning income.
  • More Jobs than Lookers

 

UAW and Ford Strike a DEAL!!! Source

  • The United Auto Workers has reached a tentative agreement with Ford on a four-and-a-half-year contract.
  • The 25% general wage increase is more than Ford workers’ total pay rise between 2001 and 2022, the UAW said.
  • Temporary workers at Ford are set to see their pay increase by two-and-a-half times.
  • This is all good news for the industry and a roadmap to bring an end to the strike.

 

Retail Sales: Source

  • New Sales are up 13.8% YOY.
  • Used Sales are up 4.3% YOY

 

Day Supply: Source

  • Day supply of New inventory is up 9% week over week and up over 80% YOY.
  • Day Supply of used inventory is down .1% week over week and up 5.9% YOY.

Wholesale Market Trends: Source: Cox Automotive Data

  • Wholesale values decreased in the first half of October after showing a bit more strength in September.
  • Manheim’s day supply has been steady in the first half of the month though it is lower than last year.
  • MMR Index values have accelerated their declines in the last couple of weeks, declining at rates typically not seen at this time of year.

Summary:

  • Used market supply remains tighter than last year, and prices are holding relatively steady overall.
  • Monthly Loan Payments have continued to increase.
  • Loan defaults are up vs 2022 overall.
  • Credit tiers will help determine our dealership’s best investment strategy to meet affordability demands.***
  • But remember, the average age of a vehicle is approaching 14 years old so wants will continue to become needs over the next few years.

The demand for our inventory will grow. Reach out to discuss more details HERE!

 

*** Reach out for a deep dive into your vehicle investment strategy.  john@theautomotiveadvisorteam.com

 

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