Automotive

Used Car Sentiment Dips

TL:DR - Customers who can wait on buying a used car are waiting and customers who cannot wait are paying elevated prices. Both need to know dealers are in this weird season with them. Otherwise, somebody else will set the narrative.
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Used Car Sentiment Dips

🗓📈 Yesterday we wrote about new car sales volume is up for the year. Today CarMax says the used car business is not doing so hot. Or is it just them?

😨👀 Cox Automotive seems to agree. Consumer sentiment is lowering amid prolonged inventory shortages, inflation, and rising new/used costs.

💤📉 The change of outlook led to some slumping in the markets. GM and Ford saw a 5% value drop while dealer groups like AutoNation INC, Lithia, and Group 1 Automotive all saw dips up top 10%.

👎👍 CarMax’s CEO says consumers make tough decisions and prioritize their money a little differently. Which has been the story for some time, leaving us to wonder when stability will return to the average American household and how long it will need to persist in encouraging consumers to return to regular spending.

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