The UAW strike is, of course, all the rage right now, but John Ellis and The Automotive Advisor Team are keeping us keyed in on all the stats and happenings that dealers need to know to navigate the rocky road ahead. Here’s the latest:
🪧 UAW Strike: The Million-Dollar Question —
How long will the UAW strike last? Your guess is as good as anyone’s, but a prolonged strike means more inflation in our auto market, so keeping a watch on data trends and dealer demand is going to be crucial to mitigate the impacts. Keep tabs on daily inventory by manufacturer to spot MSRP inflation hints tied to the halt.
😳 Car Note Hikes —
Pre-pandemic, buying a new car took 33 weeks of income. Now, it's 42.
📊 Supply Dynamics: New vs. Used —
New cars aren’t in a hurry, sitting for an average of 57 days (mostly due to affordability and high-interest rates). On the flip side, used cars are a tad more restless, with an average 45-day lot life. Keep your eyes peeled, though; wholesale prices could really start to shake things up.
🛒 Wholesale Market Plays It Cool —
The wholesale market shows a stable three-year-old price index, with inventory volumes steady.
🃏 Acquisition Game: A Wild Card —
The acquisition market is stabilizing, with only a minor change of $100 from last week. However, like most things, the impending UAW strike might swiftly alter that landscape in the coming days/weeks.
✅ Vibe Check: Franchise vs. Independents —
Overall dealer sentiment held mostly steady in Q3 2023 compared to Q2, though high interest rates and economic concerns continue to weigh heavily on the market. Franchised dealer optimism is on the rise, while independents are a bit more skeptical.
Top Factors Holding Back Business According to the
Cox Automotive Dealer Sentiment Index:
