Economic Update:

  • Board, the US economy is projected to enter a short and mild recession around the turn of the year
  • IHS Markit predicts a 0.2% increase in the consumer price index (CPI) in November 2023
  • UBS Group says in 2024 The US economy will slip into a mild recession. Due to that:
    • The Federal Reserve will slash interest rates by an eye-popping 275 basis points next year, according to UBS.
  • The expectation is that unemployment conditions will encourage the central bank to als0 start easing.

 

Wholesale:

The Manheim Used Vehicle Value Index, wholesale used-vehicle prices decreased 2.3% in October from the prior month.

  • The overall Car segment decreased -1.13%. up from -0.57% last week.
  • The Truck segment decreased -1.73% compared to -1.12% last week.
  • The Used Retail Days-to-Turn estimate is up and is now sitting around 50 days.

 

Service Trends:

  • 92% of consumers will pick businesses on the first page of local search results.
  • Online stats show independent shops outrank franchise dealers on internet searches for repair and services.
  • 70% of your active customers are searching for services in your backyard.
  • Recalls plague nearly 20% of all the vehicles on the road having an unrepaired recall. That’s about 50 million vehicles with potentially life-threatening safety issues that need our attention.
  • With Fixed Ops marketing prioritizing position, frequency, relevancy, and safety can grow your efficiency and labor hours very quickly.

We tend to forget our service operations as a needed area of marketing for new business and retention, but it should be your top priory.

John Ellis CEO & Founder of The Automotive Advisor Team, LLC

Author: John Ellis

Founder & CEO The Automotive Advisor Team, Inc. BEVEveryting, Inc. Double E Consulting, Inc.

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