Lotlinx insights:
Is 2024 still in recovery mode?
We think so. Our 2024 Inventory Predictions guide lays out the five reasons why the automotive market is still rebounding in the new year, so that your dealership can understand potential risk factors crucial for managing sales and profitability.
Industry roundup:
FROM COX AUTOMOTIVE: In the car business, “the more things change, the more they stay the same”
Anticipating major shifts, the auto industry sees minor changes, with disciplined production, EV growth, and online retail. With a 7.9% EV market share and 15.6 million new cars, the industry’s fundamentals remain stable, indicating a slower-than-expected pace of change.
FROM AUTOMOTIVE NEWS: EV production cuts give suppliers more uncertainty – and opportunity
The slowdown in EV sales growth poses financial challenges for suppliers committed to EV parts production, yet provides a chance for latecomers to invest. Suppliers can seek contractual relief and are advised to diversify components for a balanced approach to EV and traditional vehicle profitability.
FROM REUTERS: U.S. new vehicle sales to slip in January
U.S. new vehicle sales are expected to dip by 1.5% in January to about 1,087,900 units, with consumer spending on new vehicles dropping by 2% to nearly $37 billion. The average incentive spending per unit is estimated at around $2,346, up almost 74% from January 2023.
FROM AUTO REMARKETING: Used and new car patterns likely getting back to ‘normal’ in 2024
The auto industry is expecting stability with normal market patterns, including a “seasonal trend” in vehicle depreciation, forecasting a used-car depreciation rate of 18%. Changes in used-car supply and around 15.8 million new-car sales are also predicted, driven by a 6.6% increase in OEM incentives.
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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.