Lotlinx insights:
Lotlinx Q3 Vincensus Reveals A Largely Aging Vehicle Inventory
Industry-wide inventory challenges persist as electrified vehicles gain market share; Lotlinx customers outperform market averages in inventory management
Click here to read more and download the Q3 Vincensus report.
Industry roundup:
FROM CNBC: American consumers are increasingly underwater on their car loans
The average amount owed on “upside-down” loans reached a record high last quarter, with 24.2% of trade-ins having negative equity and many consumers paying over $10,000 more than their car is worth. This increase in negative equity is due to the rapid depreciation of units that were sold at inflated prices during the pandemic.
FROM ABC NEWS: Lower-priced new cars are gaining popularity, and not just for cash-poor buyers
Industry profits could take a hit if more shoppers start to stand up to steep vehicle prices. Paying the average asking price of $47,000 with an average loan rate of 7.1% isn’t a financially sound investment for many Americans, meaning dealers and automakers will need to get creative with the models they offer and the prices they market.
FROM CBT NEWS: U.S. electric vehicle market sees record growth as EV sales hit new milestones
EVs now officially make up 9% of the new vehicle sales market, the highest percentage of market share since the models have been in production. Electric models also make up 1.7% of the used vehicle market, with average price decreases putting their cost on-par with non-electric models.
FROM AUTO REMARKETING: How wholesale vehicle prices fared in first half of October
Wholesale inventory prices are right on track this month with a 0.3% bump month-over-month, while conversion rates are down slightly. Dealers could be buying fewer wholesale units due to rising inventory levels and the impacts of this month’s hurricanes.
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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.