Lotlinx insights:
Markdown Mythbusters
Lotlinx has been tracking the price elasticity of millions of VINs for over 10 years, and we’ve uncovered some truths about pricing markdowns.
Download the free Markdown Mythbusters infographic for answers to questions like:
- Will marking down a car automatically spur VDP views?
- Should markdowns only be applied for aged units?
- Do higher pricedvehicles responddifferently to markdowns thanlower pricedvehicles?
Industry roundup:
FROM REUTERS: U.S. auto sales set to modestly rise in May, report shows
Despite declining EV demand, U.S. new vehicle sales are expected to rise in May 2024. With a notable 48.1% increase in average incentive spend per vehicle this year, new vehicle sales are projected to climb by 2.9%. Automakers are refocused on higher-margin hybrids and gasoline-powered models as shoppers lean less towards EVs due to disadvantages like high purchase prices, lack of charging station availability, and limited driving distance per charge.
FROM WARDS AUTO: Memorial day deals likely offset by incentives, leasing
Discounts surged over Memorial Day weekend as new vehicle prices continue to drop and inventory levels rise. Despite higher incentives and a rise in leasing, these shifting trends suggest vehicles could spend an average of 40 days on dealers’ lots before being sold, compared to 29 days a year ago.
FROM CAR AND DRIVER: Average age of vehicles in U.S. continues to rise
The average age of U.S. vehicles hit a record high of 12.6 years in 2024, driven by pricing trends aggravated by COVID-19. The average new vehicle price is just over $45,000 this year, in contrast with the $33,695 average price in April 2019. With more vehicles aging out of manufacturer warranties, the demand for local repair shops is increasing.
FROM CBT NEWS: Used vehicle inventory rises in May as tax refund season fails to boost sales
Spring sales fell as the anticipated tax refund boost failed to generate sales, leaving a 6% increase in unsold used vehicles compared to last year. Consumer affordability continues to be a challenge, with the average listing price now at $25,571—a 6% decrease from 2023 and with leading brands such as Ford, Toyota, and Nissan seeing price drops of over 9%.
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About Lotlinx:
Lotlinx empowers automobile dealers with data and technology to give the best possible market advantage on every vehicle transaction. Lotlinx offers a suite of features such as real-time market analysis, inventory management, and precision targeted vehicle advertising. Dealers leverage the platform to identify potential inventory risks and execute VIN-specific strategies enabling them to move inventory faster and more efficiently.
To start leveraging Lotlinx technology at your dealership, request a free, individualized Inventory Risk Analysis.