Economic Automotive Outlook: Source

For the third consecutive month, median one-year-ahead inflation expectations remained unchanged at 3.0% in March. In contrast, the median three-year ahead inflation expectations increased to 2.9% from 2.7%, whereas the median five-year ahead decreased to 2.6% from 2.9%.  The implications are important for rate cuts that will impact retail demand later in the year and next year.

 

Cox Automotive’s Manheim Wholesales Market Source

  • Depreciation accelerated this week, with the 3-year-old index dropping 0.6% to 100.9%.
  • Car segment increased +0.21%.
  • Truck segment decreased -0.02% compared to the appreciation seen the prior week of +0.09%.

 

Retail Trending: Source

  • The used retail sales rate is trending similar to most previous years and days’ supply at 41 days.
  • The Used Retail Days-to-Turn estimate is now sitting around 37 days.
  • New car sales trending close to 2019 levels and days’ supply moved down to 72 days.

 

Summary: Source

  • The average listed price for a used car at the end of March was $25,540.
  • Interest rates are falling slowly, and significant improvements are likely later in 2024.
  • Edmunds reports a 5.5% year-over-year drop in used-vehicle average transaction prices, indicating market stability.

Buyers are seeing and feeling that now might be a good time to explore both new and used options, but affordability is driving them to used even with the average new car monthly payment dropping from $800 to $750. It’s a market share-taking market with the right plan and approach. We will dive into that more today.

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.

LinkedIn page