Cox: Dealers Are Pessimistic on EV Sales
Even as electric vehicle sales grow, dealers are feeling less confident in the overall outlook for EVs. Dealers' sentiment around EV sales is worsening from a year ago and sinking to record lows, according to Cox Automotive's first-quarter Dealer Sentiment Index, which surveyed 546 franchised and 472 independent retailers from Jan. 30 to Feb. 13. According to Automotive News, the survey results show that the EV "thrill is gone," said Jonathan Smoke, chief economist for Cox Automotive. "You have to hunt to find the dealer that's optimistic about the EV market growing." Although EVs are grabbing a bigger share of the new-car market, dealers are down on the technology. Their negative attitudes are reflective of slowing growth. New EV registrations rose 15 percent in January, but that pace was significantly slower than the 52 percent growth reached in 2023, according to data from S&P Global Mobility. EVs made up 7.8 percent of the U.S. light-vehicle market in January compared with 7.1 percent in the same month last year, S&P Global Mobility said. For full-year 2023, EVs had 7.7 percent of the market versus 5.7 percent in 2022. Click here for the full story.
As Electric-Vehicle Shoppers Hesitate, Hybrid Sales Surge
Automakers have been working for years to transcend the image of hybrid cars as stodgy fuel sippers, remaking them with sportier designs and extra pep. Now, the once-niche hybrid is the hottest car on the lot. Hybrids, which combine a gas engine with a battery-propelled motor to boost fuel efficiency, have been a small but steady slice of the U.S. car market since the Toyota Prius ushered in the technology more than two decades ago. In recent years, they have taken a back seat to fully electric vehicles, as automakers introduced many EVs to challenge Tesla. But car brands have been methodically expanding their hybrid offerings — partly to help meet tougher tailpipe-emissions rules — and for some, they have become a competitive edge, reports The Wall Street Journal. Hybrid leader Toyota Motor for example, offers a hybrid version of nearly every gas-powered model in its U.S. showrooms. In some cases, such as Toyota’s new Camry sedan or Sienna minivan, a hybrid is the only option. The number of hybrid models on sale in the U.S. grew 40 percent over five years, to about 70 for the 2024 model year, Cox Automotive estimates. Click here for the full story.
‘Trust, But Verify' Helps Dealer Group Cut Customers' Service Wait Times
Dealership fixed ops may be far removed from the Cold War, but a Russian saying made famous during that era — "trust, but verify" — goes a long way to describe how Jim O'Donnell and his team have improved performance across the 12-rooftop Auto Services Unlimited group. Based in Cleveland and with stores in Florida and New Jersey as well as Ohio, the eight-franchise group (which also operates two high-volume used-only stores) has adopted a relatively simple, extremely low-cost way to make sure there are no unnecessary delays in getting service customers in the door as quickly as possible, reports Automotive News. An accountant might call it auditing, but it's really having entry-level employees regularly try to book online appointments — without completing the request — and report in to ensure that common service appointments for oil changes and check engine lights are available the same or next day. Why go through the trouble? Well, since Auto Services Unlimited began the practice in mid-2022, the wait times for appointments at some of its stores has dropped from as many as 15 days to zero or one day, said O'Donnell, the chain's fixed operations director. Click here for the full story.
Dealers Can Sell Shoppers on High Resale Values
Dealers have a new gadget in their toolkit thanks to Kelley Blue Book’s 22nd annual Best Resale Value Awards. Those who sell models on the list can assure shoppers that the car’s resale value may translate into hundreds or thousands of dollars. The study recognizes vehicles for their projected retained value through the initial five-year ownership period. "The automotive landscape continues to change rapidly, with more new introductions of brands and models with varying powertrains each year,” says Rheia Szymczyk, senior manager of valuation operations for Kelley Blue Book tells Wards. “Consumers now have more electric-vehicle, plug-in and hybrid options than ever before, and we continue to modify our Best Resale Value Awards categories accordingly to accurately reflect the marketplace.” This year marks the first Best Resale Value Award for EV startup Rivian, which is being honored for its successful R1S electric SUV. For the third consecutive year, Toyota wins Best Resale Value: Brand, and its sibling Lexus wins Best Resale Value: Luxury Brand. Click here for the full story.
New Vehicle Inventory Shrinks in Early March as Sales Rise and Prices Fall
Resilient consumer demand in February spurred new vehicle sales forward but dragged inventory levels down from January’s above-average supply. The pace of sales intensified last month, moving at a seasonally adjusted annual rate of 15.8 million compared to 15 million in January. This placed downward pressure on new vehicle supply, which totaled 2.47 million units in the early days of March. The days’ supply level, according to Cox Automotive, was 76 days, down from 80 days at the start of February. March’s initial inventory count reflects a vast improvement over the previous year when manufacturing and supply chain disruptions were still constraining new vehicle production, reports CBT News. Higher new vehicle sales came with the added effect of lower prices. Average transaction prices dropped 2.2 percent in February from the previous year to $47,244 but remained higher than before the pandemic. On a month-over-month basis, prices declined less than 1 percent. Electric vehicle prices suffered the most cooling, falling at a rate of 13 percent from 2023. Ultimately, the numbers seen throughout February and into March indicate the new vehicle market is retreating from its pandemic-era peak. Click here for the full story.
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