Automotive Dealer's Weekly Update 6/1/23

The Automotive Advisor Team

The good news is in the spending and wages segment of the economy we see growth this week. That suggests we can expect a good June and many of our dealers are already feeling the momentum. However, there are pitfalls all along the way that reveal themselves as margin killers if you don’t stay laser focused. Take a look at this week’s report to see how you can take more than your fair share and reach out for a comprehensive study of your marker, inventory, and rooftop operations

Economic Outlook SOURCE

• What’s the latest:  Growing income and spending data indicate that the consumer is alive and well, and inflation is still a factor that could lead to further Fed rate increases.

• Why it Matters: First-quarter economic growth was revised upward but still reflected a slowing economy in aggregate. Beneath the headline, deceleration was strong consumer spending.

• What’s The Bottom Line:  Factoring in inflation, real spending increased by 0.5% in April when it had been unchanged in March. The income and spending data indicate that the consumer is alive and well, and inflation is still a factor that could lead to further Fed rate increases. With personal income, personal spending is up as well. But the concerning number here is personal savings. Take a look below.

New Car Outlook

• What’s the latest: The supply of new inventory is down 1 day to 53 days and 47% above last year.

• Why it Matters: New cars sold in the last 30 Days are up 10K from last week and now running 15% above last year. With supply stable and sales continuing to trend up, the average listing price is $47,463, up $40 from last week and up 5% over last year

• The Story in the Graphs: Looking left to right below from the top you see the supply of inventory and the yellow line is steady. And 47% up year over year with the new vehicle sales and the price staying strong this gives us the strategic insight we need to determine how to sell, acquire and retain to capitalize on what the market is giving us for the remainder of this year. Take a look: