Automotive

All Things Used Cars: What Recession?

David Long getting the dealer community together to listen to DJ Smokey Smoke share some data-driven positivity is the kinda thing we mean when we say band together and push back. In case y'all like living examples.
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All Things Used Cars: What Recession?

As always, Jonathan Smoke's time with David Long and the All Things Used Cars community was insightful and encouraging. He provided a snapshot of Q2 from his vantage point as Cox Automotive's chief economist and traced the most likely trajectory through Q3, Q4, and beyond. Relisten to the full replay on Clubhouse, or check out a central opportunity we pulled out of the talk. 

Talking ourselves into a recession. Jonathan shared a recurring piece of data-backed hope regarding dealership climate. A recession is not here, and there is no indication of one beginning anytime soon. However, when people are scared of a recession, their spending changes, and that shift can indeed lead to a recession. 

That isn't to say people are not feeling a pinch. Covid-based financial support has ended, and the Russian invasion of Ukraine has increased the cost of living for many Americans. People have reason to be timid and will spend accordingly. 

Opportunities are all around. 

  • Wholesale prices are going up. Capturing vehicles to resell to rental fleets or similar wholesale buyers can net substantial profits. 
  • New jobs continue to rise. Low unemployment numbers ease recession rumors. 
  • Fixed Ops is an essential part of business in a time when people are keeping cars longer than ever. 
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