We released December Manheim Used Vehicle Value Index (MUVVI) yesterday and closed the door on what was a truly remarkable year for used-vehicle values. As we started the year, we told you to expect a 3 percent increase in the MUVVI in 2018, and we told you to expect a roller coaster ride with weakness … Continued
The new year kicked off with positive reports on new-vehicle sales and the job market. Still, the economy and auto market are less certain with more risks to the downside in 2019. Looking ahead: While 2018 was a very strong year for both the economy and vehicle sales, it will be nearly impossible to repeat. … Continued
Cox Automotive President Sandy Schwartz (far left) hosted a panel at the Atlanta Economics Club last month of the top execs from Atlanta’s locally-headquartered auto manufacturers: (l-r) Larry Dominique, president and CEO, PSA North America Inc.; Klaus Zellmer, CEO, Porsche USA; and Deitmar Exter, CEO, Mercedes-Benz USA. Before this panel, I provided a high-level overview … Continued
After the December increase, the discount rate, which the Federal Reserve controls, was up 100 basis points year over year. With this fourth quarterly increase, the Fed has increased rates more times in 2018 than any time since 2006. The last time it raised rates more was in 2005 when it increased eight times, totaling … Continued
SEPTEMBER 15 UPDATE: The media coverage of the rain and flooding in the Carolinas has been nothing short of heartbreaking, with many lives impacted, many homes and buildings destroyed. We’re hopeful for a quick recovery in the area, with minimal setbacks from the additional post-rain flooding forecast for this week. Fortunately, this area of the … Continued
Consumers are following several trends/current events that negatively impact their purchasing power, including rising gas prices, rising interest rates, and new proposed tariffs on imported vehicles and parts. Of those three, gas prices garner the most attention (87 percent), interest rates second (81 percent), but auto tariffs register a strong 71 percent. Consumers aren’t just … Continued
This article was originally published in The Hill on July 20, 2018: https://thehill.com/blogs/pundits-blog/economy-budget/342969-a-dubious-doomsday-scenario-subprime-auto-lending-wont A persistent automotive doomsday thesis that continues to have favor with some in the media and on Wall Street is that subprime auto loans are booming and creating the next great financial crisis. Don’t believe it. As an economist who covered housing … Continued
The Federal Reserve today raised the official short-term rate policy by .25 points. The move by the Federal Reserve was widely expected, the result of continued strong economic growth combined with inflation reaching the Fed’s target. The Cox Automotive Industry Insights team continues to monitor interest rate trends, as higher rates and tighter credit are … Continued
This article was originally published in The Hill on May 9, 2018: https://thehill.com/opinion/finance/386893-many-americans-are-shrugging-off-higher-gas-prices As the U.S. economy has slowly improved during past years, so too have fuel prices increased. The average price for a gallon of unleaded according to AAA reached $2.82 this week, the highest level in more than three years, dating back to … Continued
This article was originally published in The Hill on Sept. 6, 2017: https://thehill.com/blogs/pundits-blog/energy-environment/349487-hurricane-harvey-the-worst-disaster-for-automobiles Once damages are finally tallied, Hurricane Harvey will likely prove to be among the worst, most-costly natural disasters to hit our United States. In addition to the heartbreaking loss of life, damages have been estimated by Moody’s Analytics to be in the … Continued
