🗞️ Industry roundup:
FROM FORBES: Shoppers sit on their wallets; October auto sales gain only slightly
U.S. auto sales in October 2024 rose around 2.1% from October 2023, reaching around 1.3 million vehicles. Despite a 25.1% increase in inventory (1.9 million vehicles) and higher incentives averaging $3,149 (up 70.5% from last year), many customers are delaying purchases, waiting for interest rates and prices to drop. The average transaction price for new vehicles in October decreased to $44,904, down $739 from October 2023, though still high historically. Election uncertainty and extreme weather also contributed to the modest sales increase.
FROM CBT NEWS: Trump’s White House return signals major shift in EV policy, trade, and economic direction
Trump’s victory, backed by a Republican Senate, is expected to reshape economic and automotive policies by easing EV regulations and altering the Inflation Reduction Act’s clean energy incentives. His administration may reduce regulatory pressures on automakers to shift toward EVs, possibly impacting California’s independent emissions standards that have led 17 states in setting high zero-emission goals. Further tariffs on Chinese battery imports could disrupt EV supply chains.
FROM AUTO REMARKETING: Consumers might intend to buy new, but reality pushes them to used-car market
The price gap between new and used cars hit a record $20,365 in Q3 2023, marking the first time since 2004 that the gap has exceeded $20,000. New cars averaged $47,542, while used cars were $27,177. Despite higher discounts ($1,744 vs. $828 last year), longer wait times indicate shoppers’ hesitancy to commit. While many shoppers prefer new, limited options under $20,000 mean some will likely choose used, with many paying more for newer used models or opting for older cars.
FROM U.S. NEWS: U.S. News report highlights key automotive insights as value-driven brands lead consumer trends in 2024
According to the report: In early 2024, consumers focused on value-oriented car brands like Toyota, Kia, and Hyundai amid steady inflation and increased manufacturer discounts. New vehicles were 34% more popular than used, with recent used models in high demand. SUVs, especially mid-size, were the top choice, as sedans and sub-$20,000 models saw less interest. Electric and hybrid vehicles attracted 25% of shoppers, with Tesla leading in popular EV models and Rivian recognized as a top emerging all-electric brand. Key models included the 2024 Kia Telluride and 2025 RAM 1500.
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