“All Things Used Cars” Auto Market Update 6-28-24

 

Economic Source

  1. 3 in 4 consumers expect the upcoming U.S. presidential election to impact the economy.
  2. 66% of consumers and 82% of dealers feel the outcome of the election will impact interest rates.
  3. Inflation is the No. 1 concern among shoppers, with 74% of consumers and 81% of dealers believing the next election will influence it.
  4. According to 60% of consumers, the November election will affect their next vehicle purchase.
  5. Most consumers feel the election will not impact their powertrain decisions.

Retail Trending: Source

  • Carvana reported significantly improved average front-end gross margins in their latest earnings report, from $808 in 2022 to $3,030 in Q1 2024,
  • CarMax continues to have strong retail margins at $2,347 and set records in both wholesale gross and extended protection plan sales in Q1.
  • Early Summer retail sales are running higher year over year by about 9%.

 

Summary: Source

Car shoppers believe that vehicle prices will change due to the election

  • 41% expect prices to rise, 26% of shoppers expect prices to fall & 33% have no impact on vehicle prices.
  • 52% of shoppers expect the election outcome not to affect their decisions to buy yet dealers do believe that the political climate ahead of the November election is increasingly becoming a factor holding back business.

[/vc_column_text][/vc_column][/vc_row]

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