The overall market sentiment remained cautious due to the lasting impact of the CDK hack. While the most severe effects were mitigated, the market has not yet fully normalized. The automotive sector demonstrated resilience, particularly in used car sales that saw an 11% increase, but struggled to fully recover lost sales and demand, especially for new vehicles which saw only a 6% increase in sales. New vehicles continued the trend of increased day supply, rising by 4 days to 83 days while used vehicles maintained their steady day supply. The partial recovery in sales and the slow turnover of new car inventory indicate that the market was still in the process of regaining stability.
New Vehicles:
- Despite a 6% increase in sales MoM, the market still faced challenges, as indicated by the rising day supply that increased by 4 days to 83 days.
- Both day supply and aged inventory continue the increasing trend MoM as day supply increased by 4 days and age inventory increased by 3%.
Used Vehicles:
- Day supply held relatively steady even with a 7% sales drop MoM.
- The markdown magnitude and percentage of sales remained consistent; however, the average last listed price declined by 4% YoY.
Recommended action steps for upcoming months:
- Used vehicles recovered better than new vehicles from June losses, increasing sales by 11% and experiencing a 10% increase in demand.
- Last listed prices fell by 10% YoY with gas units falling 3% more than hybrid and EV vehicles.