Q3 Market Watch

As we move into the last quarter of the year (whaa? how??), John Ellis and The Automotive Advisor team review some of the major movements in the industry.

🐢 Slow but (Somewhat) Steady —

• GDP growth is nearly 1% higher than last year.
• Unemployment, though 1% higher YOY, remains stable.
• Earnings growth stands firm at 7.2%.
• Consumer confidence and sentiment declined in September, with plans to buy a vehicle following suit as consumers saw less favorable prices and rates.


🐝 New Car Buzz —

Reports from Cox Automotive predict September's new vehicle sales will climb to 15.5M (up from last year's 13.6M). Big gains from Honda, Nissan, and Tesla are further adding bees to the buzz.


📈 Used Car Spike —

High prices and interest rates are nudging consumers towards the used-car market. Sales are up 4.5% year-to-date, echoing this trend. While the used vehicle market is seeing a steady incline, dealers remain cautious.

😰 Wholesale Market Concerns —

The ongoing strike's impact continues to cast a shadow of uncertainty on the industry as a whole, with wholesale prices showing a slight dip. However, dealers should avoid rash wholesale buys. Continue to carefully analyze recent purchase/sales data to inform your acquisition plan and leverage local trends.

Cox Automotive

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