SubPrime News, September 23, 2019 — While the Federal Reserve cutting interest rates twice in less than two months certainly has generated plenty of attention, automotive experts aren’t quite so sure the actions will directly lead to immediate upticks in vehicle deliveries and loan originations. The chief economist at Cox Automotive shared his perspective following the Federal Open Market Committee … Continued
The stock market failed to make it four straight weeks of gains as the UAW strike at GM, turmoil in the Middle East, floods in Texas, and global economic weakness collectively dampened moods. The Fed also made news every day, and, when the Fed has to take action, it’s not usually because things are looking … Continued
An ideal set of market conditions are emerging that provide independent dealers with maximized floor planning opportunities. First, we are experiencing the longest sustained period of economic expansion on record in United States’ history, boasting 122 consecutive months of growth. Second, during their Federal Open Marketing Committee meeting yesterday, the Federal Reserve announced another 0.25 … Continued
As was widely expected, the Fed officially cut the short-term rate policy by a quarter point, so their rates are back to the range we had last August before the September 2018 increase. Citing global developments and muted inflation pressures, the Fed decided to cut rates even though there was dissension in the vote with … Continued
Sales of certified pre-owned (CPO) vehicles increased 11% year over year in August and were up 10% versus July. The increase was primarily driven by the shifted calendar which brought an extra selling day (including Labor Day) into last month. For the month, 260,725 CPO units were sold. Over 1.9 million CPO vehicles have been … Continued
Brent crude futures increased 15% yesterday, which was one of the largest single-day jumps in history. The decline in Saudi production due to the Saturday attack on one of the world’s largest oil processing facilities amounts to an estimated 5% of the world’s oil supply. In the U.S., gas prices increased yesterday, but only $0.03 or … Continued
The stock market kept its winning streak going for a third straight week, and again it was mainly related to rising hopes of progress with U.S.-China trade talks. Meanwhile, the European Central Bank beat the U.S. Fed to the rate-reduction punch by lowering its official rate by 10 basis point in the EU – it is now down … Continued
Derived from a quarterly survey that Cox Automotive issues to a representative sample of franchised and independent auto dealers from around the country, the CADSI measures dealer perceptions of current retail auto sales and sales expectations for the next three months as “strong,” “average” or “weak.” The survey also asks dealers to rate new-car sales … Continued
ATLANTA, Sept. 16, 2019 – According to the Q3 2019 Cox Automotive Dealer Sentiment Index (CADSI) released today, U.S. automobile dealers view the current market as negative, with an index score of 48. The slight decrease from Q2’s score of 49 was not statistically significant. The index reading of 48 indicates that slightly more dealers … Continued
August 2019 U.S. auto sales came in slightly higher than forecast, marking another solid month for the industry. The seasonally adjusted annual selling rate (SAAR) was 17.0 million units. Volume was helped by a good Labor Day weekend, strong fleet sales and also a healthy dose of incentives. We’ve shared top-level takeaways from August sales. … Continued
