Cox Mid-Year Review

The Cox Automotive's Mid-Year Review is out. We grabbed a few insights to share! 
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1. Auto sales have been on a steady upward trend since Q2 of last year, with forecasted sales for the current year increasing to 15 million, up from 14.2 million previously, driven by retail and commercial buyers despite rising interest rates.
2. Uncertainty lurks in the year's second half due to unpredictable market resilience. Sales seem hesitant, and underlying conditions are rapidly changing, with incentives per vehicle rising by 10% over the last year.
3. Average transaction prices were once higher than the MSRP but have recently dipped below. In contrast, the average APR for buyers has risen.
4. Production rates are improving, but supply conditions vary drastically across brands. Luxury brands hold a surplus, while others face shortages.
5. The vehicle market is steadily shifting towards higher price points, with 41% of vehicles sold this year having an MSRP above $50,000.
6. Traditional luxury brands are gaining market share, particularly in the post-COVID market.
7. Inventory recovery is expected to be a key driver of 2023 results.
8. CPO sales trends echo overall sales, anticipating increased sales later in the year.
9. Despite high prices, interest rates, and low supply, the US market continues advancing.
10. Introducing EVs has brought dynamic changes to the market, with a rise in inventory and sales and the launch of new brands and models leading to decreased prices.
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Check out the full presentation and replay here.