“All Things Used Cars” Auto Market Update 6-6-2024

 

Economic Source

  • Personal Income Growth: Decelerated to 0.3% from 0.5% in March.
  • Employee Compensation Growth: Slowed to 0.2% from 0.6% in March.
  • Government Transfer Payments: Growth decelerated to 0.3% from 0.8%, with reductions in Medicaid, Social Security payments, and unemployment compensation.
  • Personal Income: The pace slowed after reaching a 5.3% year-over-year gain in June of 2023
  • Personal Saving Rate: March’s personal savings rate dipped to 3.2%.

Wholesales Market Source

  • The 3-year-old index depreciated 0.4% to 99.2%.
  • Lane efficiency flat or increasing some for 6-year-vehicles
  • Two of the nine Car segments increased last week.
  • All thirteen of the Truck segments reported a decline last week.

Retail Trending: Source

  • Retail prices declined 0.2% for non-luxury and 0.6% for luxury.
  • The used retail sales rate is trending similar to most previous years; days’ supply is at 42 days.
  • New car sales trending close to 2019 levels and days’ supply is at 74 days.

 

Summary: Source

  • Consumer confidence increased by 4.6% in May due to improvements in both present and future outlooks but still down 0.5% year over year.
  • Vehicle purchase plans are unchanged compared to April and May last year.
  • The market is tight, but consumers are still buying.
  • The right inventory and marketing strategy can make this a banner year for your dealership.