Economic Outlook: Source

  • Feds noted job gains remain strong and unemployment remains low, while price growth remains elevated, even as it has cooled since peaking in 2022.
  • As a result, the committee said it intends to keep the interest rate at the current level until it has more confidence that inflation is on a sustained track toward its official 2% goal.
  • However, Inflation did show signs of rebounding in the first quarter of 2024after cooling in the second half of 2023.

 

Cox Automotive New and Used Retail Outlook:

  • Used prices dropped slightly for 3-year-old inventory but the retail sales rate increased again this week.
  • That dropped days’ supply is still low at 37 days.
  • New car sales are still moving up putting downward pressure on day supply averaging 58 days now.

 

3-Year-Old MY Manheim Source

  • Along with the retail price, the 3-year-old index dropped 0.1% to 102.0% with the sale prices below MMR (-1.15%) and lane efficiency plateauing. Activity is slowing in anticipation of the pivot.

 

2- to 6-Year-Old MY Black Book: Source

  • Market momentum is accelerating, evidenced by a +0.39% increase in values from last week.
  • Auction activity is bustling, characterized by strong conversion rates and vigorous bidder participation.

 

Summary: Source

  • Last week we saw a softening in the market and this week we saw a little bit of an acceleration and expect this up-and-down trend to continue for a while.
  • Focus is to manage your inventory inflows weekly if not daily balanced to a sales rate that maximizes market conditions and demand. Remember, affordability is the demand driver right now.

 

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

Author: John Ellis

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