J.D. Power’s Post

The time to buy is now

We are on the cusp of the supply chain crisis anniversary back in July 2021, when we witnessed inventories plummet from 2 million to 800,000 in a span of a few months. "Leasing is fine in May, and in June it will be OK, but it's going to come to a screeching halt in July," because leasing returns will dry up, warned Tyson Jominy, vice president of data and analytics at J.D. Power. To tackle this challenge, Jominy stressed that automakers and dealerships must ramp up their sales strategies significantly. Learn more from Automotive News:

We are on the cusp of the supply chain crisis anniversary back in July 2021, when we witnessed inventories plummet from 2 million to 800,000 in a span of a few months. "Leasing is fine in May, and in June it will be OK, but it's going to come to a screeching halt in July," because leasing returns will dry up, warned Tyson Jominy, vice president of data and analytics at J.D. Power. To tackle this challenge, Jominy stressed that automakers and dealerships must ramp up their sales strategies significantly. Learn more from Automotive News:

We are on the cusp of the supply chain crisis anniversary back in July 2021, when we witnessed inventories plummet from 2 million to 800,000 in a span of a few months. "Leasing is fine in May, and in June it will be OK, but it's going to come to a screeching halt in July," because leasing returns will dry up, warned Tyson Jominy, vice president of data and analytics at J.D. Power. To tackle this challenge, Jominy stressed that automakers and dealerships must ramp up their sales strategies significantly. Learn more from Automotive News:

We are on the cusp of the supply chain crisis anniversary back in July 2021, when we witnessed inventories plummet from 2 million to 800,000 in a span of a few months. "Leasing is fine in May, and in June it will be OK, but it's going to come to a screeching halt in July," because leasing returns will dry up, warned Tyson Jominy, vice president of data and analytics at J.D. Power. To tackle this challenge, Jominy stressed that automakers and dealerships must ramp up their sales strategies significantly. Learn more from Automotive News:

We are on the cusp of the supply chain crisis anniversary back in July 2021, when we witnessed inventories plummet from 2 million to 800,000 in a span of a few months. "Leasing is fine in May, and in June it will be OK, but it's going to come to a screeching halt in July," because leasing returns will dry up, warned Tyson Jominy, vice president of data and analytics at J.D. Power. To tackle this challenge, Jominy stressed that automakers and dealerships must ramp up their sales strategies significantly. Learn more from Automotive News:

Recent reports highlight a downturn in profits for U.S. auto retailers, attributed to strategic price cuts and incentives amid economic uncertainties. Elevated prices and limited supplies previously benefited dealers, but increased vehicle production has squeezed margins. Discounts and incentives on new vehicles are rising, impacting profitability for dealers and automakers. Despite efforts to attract buyers, U.S. new-vehicle sales have slowed. Challenges also arise from electric vehicles, with higher marketing expenses and lower resale values. Price reductions in the EV sector add to industry woes. Adaptation and innovation remain crucial for auto retailers in this evolving market. #AutomotiveIndustry #AutoRetail #BusinessInsights

Is this why the auto industry can't have nice things? Because it lacks discipline and resolve? After an accidental lesson in which it learned that there is another way to do business profitably -- and during which industry leaders swore that they not only learned the lesson of operating with leaner inventories, but would take it to heart in the future -- the U.S. auto industry is instead reverting to its pre-Covid norms. Inventories and incentives are climbing back up, while turn rates slow and dealer carrying costs climb. Why? To chase market share. We're moving back from a consumer-pull to a manufacturer-push retailing model, unfortunately. Well, it was great while it lasted -- for everyone but consumers, that is. #automotive #JDPower #inventory #cars #AutomotiveNews

Our CFO, Donald Retreage, Jr. - CFO/COO/Integrator points out the latest industry fluctuations, the new-vehicle supply has surged by 46% compared to last year! Although, according to Cox Automotive, April’s new car sales fell lower than expected, dropping 2% less year-over-year and 7% lower than March. Although, the seasonally adjusted annual rate (SAAR) is expected to show an improvement of 200,000 from 2023 and 400,000 from March’s figure. Many dealerships will be concerned about less profitability for the month of April, if it persists how will you navigate in this economic environment? #profitability #autosales #autodealers

Despite a #cyberattack that crippled dealers, a shifting economy, and changing consumer preferences, the U.S. auto industry experienced modest sales growth in the second quarter of 2024. An estimated 4.1 million new cars and trucks were sold, a slight increase of .1% compared to the same period in 2023. Analysts point to pressing challenges, such as high interest rates and global economic uncertainty, as the most likely culprits for the modest growth. https://bit.ly/4cqZJ23