Used-vehicle values declined again in March while car sales improved as the industry shifts toward a buyers’ market.
The Manheim Used-Vehicle Value Index declined 0.4% sequentially and 14.7% year over year to 203.1 in March, marking the second consecutive month of a sequential decline. Used-car retail sales dipped toward the end of March, but estimates call for sales to be up 6% month over month and 7% YoY.
Nearly every major automaker posted an increase in new-vehicle sales in the first quarter, with Toyota Motor North America seeing the largest gain at 20.3% YoY.
Meanwhile, promotions ticked up for motorcycles and other powersports products in March. Synchrony Financial is supporting promotional financing across several brands.
In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris and Editor-at-Large Joey Pizzolato discuss the top news stories during the week ended April 5.
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Transcript:
Editor’s note: This transcript has been generated by software and is being presented as is. Some transcription errors may remain.
Hello everyone and welcome to the road map from auto Finance News.
Since 1996, the nations leading newsletter and automotive lending and leasing, it is Monday, April 8th, and I’m Amanda Harris, joined by Joey Pizzolato. This is our weekly wrap on what happened in auto finance for the week ending April 5th, 2024, in economic News payrolls increased by 303,000 in March and topped all estimates, while the unemployment rate ticked down to 3.8% and wages grew, the strong hiring figures combined with the pickup in inflation earlier this year raise the possibility of delayed or fewer interest rate cuts. This year, consumer price figures will release on Wednesday and will spell a clearer picture of potential federal official decisions regarding rates and Automotive News 1 main financial completed its acquisition of Foursight Capital last week and I move that will expand the lenders dealer network and enhance and its technology stack. Onemain will leverage Salt Lake City based Foursight’s investments in Automation and dealer experience, as well as tap into four sites network of franchise dealers and powersports News promotions ticked up for motorcycles and other powersports products in March. As dealers look to capture Sales, Synchrony Financial provides financing across several brands, including Polaris, and has seen a higher volume of incentives such as money off the MSRP, promotional financing and rebates compared with two years ago. Dealers are once again having to make deals with customers as high rates and costs turned them away and Auto Finance used vehicle values again declined, while new vehicle sales were strong. Joey has a details Joey.
Joey Pizzolato 1:55 Yeah. In the first quarter, sales for Toyota, Toyota Motor North America increased 20.3% year over year. They were the big winners in Q1. General Motors, Kia and Stellantis. All joined Tesla as the only automakers to post year over year sales declines in the quarter. Stellantis logged a 10% year over year drop led by a 25% year over year decline in sales of its RAM brand. Kia saw a 2% year over year decline off a record first quarter 2023 and GM saw 1.5 Euro year year over year decline in deliveries. Umm. Which were driven by lower fleet deliveries excluding fleet, the deliveries retail sales include increased 6% year over year Tesla, so an 8.5% year over year decline. American Honda, Ford, Hyundai, Mazda, Rivian, Subaru, Volkswagen and Volvo Cars all had year over year increases in Q1. Sales ranging from single digits to double digits. Volkswagen saw a 21% boost in sales on the used vehicle value side. Uh, March saw a 50% year over year decline in values, according to Cox Automotive. That is the 19th straight month of year over year declines, according to Cox. March marks the second month of sequential declines after used vehicle values were flat from December 2023 to January 2024. All major segments posted year over year declines with Evies posting 19.1% year over year decline compared to 12.8% year over year decline. For non EV retail sales are we’re estimated to be up 6% month over month and 7% year over year, according to Cox Auto. Amanda Harris 3:58 My great that is a good wrap up for the industry, a little bit of update there on used and new cars and we’ll continue to look at what’s happening in credit availability and some risk management things to come this week as well as technology. So you can TuneIn for more updates on our industry this week and that will do it for today’s episode. So thank you for joining us on the roadmap and be sure to follow us on X, formally known as Twitter and LinkedIn, and we will see you online at autofinancenews.net and here next time.
