Automotive News From Cox Autos - Market Performance New and Used, November 7, 2023

Welcome to From the Newsroom, a roundup of news from Cox Automotive and perspectives from its analysts and experts on topics dominating the automotive industry.

As we enter November, the auto industry has much to be grateful for – healthy U.S. sales in October, relatively strong quarterly earnings and many UAW workers returning to their jobs, to name a few.

In the Auto Market Report video published this morning, Cox Automotive Chief Economist Jonathan Smoke noted, “I’m optimistic that we will see momentum improve. We are seeing improving conditions that mean more supply and better prices in both new and used. That means we will see consumers that have been sitting on the sidelines finding price points that will encourage them to get back into the market.”

Meanwhile, the Manheim Used Vehicle Value Index (MUVVI) released this morning indicates a decrease in wholesale used-vehicle prices in October, reversing the gains from the previous two months and registering a year-over-year decline. (See note above, RE: “better prices.”)

Last month, the earnings season began for the major automakers. The Industry Insights team has analyzed the quarterly U.S. market performances for Ford Motor Company, General Motors, Hyundai Motor Company, Stellantis and Toyota Motor Corporation. Reports for Honda and Nissan will be published later this week.

In case you missed it, check out the recent article by Derek Hansen, vice president of Operations for Cox Automotive’s Inventory Management Solutions, titled The Power of Data in an Evolving Automotive Market.

We hope you find this selection of articles informative and helpful. Visit the Cox Automotive Newsroom for the latest on the industry’s most important topics. Bookmark the Auto Market Snapshot, a one-stop dashboard for the data our team is tracking.

FED ACTIONS SPEAK LOUDER THAN WORDS ABOUT RATE POLICY

In a Smoke on Cars post published last week, Cox Automotive Chief Economist Jonathan Smoke explained that the actions of the Federal Reserve “portend higher rates ahead.”

The Fed maintained its current interest rates in its recent meeting, a decision that was anticipated. Despite this unchanged policy, interest rates have been steadily rising. While the Fed monitors inflation trends ahead of its next meeting, consumers and businesses may still experience even higher interest rates. This is due to the increase in long-term rates driven by both the Treasury and the Fed’s simultaneous supply of funds to the market.

Read Smoke’s thoughts to gain a better understanding of how the Fed’s action is causing a reaction.

MOMENTUM EXPECTED TO IMPROVE IN NOVEMBER

In the Auto Market Report published this morning, Chief Economist Jonathan Smoke reveals that November is not off to a great start in terms of some economic indicators. However, several metrics are moving in positive directions, which should lead to improving conditions and strong momentum as the year comes to an end.

Read the Auto Market Weekly Summary and watch the Auto Market Report video for more data and insights from Smoke on new and used retail sales and inventory, auto financing, and Cox Automotive leading indicators.

WHOLESALE USED-VEHICLE PRICES DECREASE IN OCTOBER

Wholesale used-vehicle prices decreased 2.3% in October from September. The Manheim Used Vehicle Value Index (MUVVI) dropped to 209.4, down 4.0% from a year ago.

“October revealed some not-so-spooky price moves, namely a reversal of the gains that were seen during the prior two months,” said Chris Frey, senior manager of Economic and Industry Insights for Cox Automotive. “This confirms the caution that was mentioned last month about not getting ahead of ourselves. The UAW strike appears to be settled, avoiding one action that could have led to higher wholesale prices.”

The seasonal adjustment reduced the October decrease. The non-adjusted price in October declined by 3.1% compared to September, moving the unadjusted average price down 6.3% year over year.

See the Data Point for additional details and more data on the used and wholesale markets.

MARKET PERFORMANCE: FORD, GENERAL MOTORS, HYUNDAI, STELLANTIS AND TOYOTA

Each earnings season, our Industry Insights team takes a quick run through the foundational numbers of the major automakers — U.S. market data on sales volumes, ATPs, incentive spend — and provides a top-level look at automaker performance. 
 
Quarterly U.S. market performance reports are available for Ford Motor Company, General Motors, Hyundai Motor Company, Stellantis and Toyota Motor Corporation.

Check back in the Newsroom for reports on Honda and Nissan, which will be published later this week.

THE POWER OF DATA IN AN EVOLVING AUTOMOTIVE MARKET

During challenging times in the automotive industry, such as the fallout from the United Auto Workers strike, economic uncertainties and political pressures, data becomes increasingly significant. Derek Hansen, vice president of Operations for Cox Automotive’s Inventory Management Solutions, emphasized the importance of data-driven insights in an article published last week. He notes that, with vAuto, an essential part of the Cox Automotive ecosystem, dealers use real-time market data to maximize returns on their vehicle inventory. Driven by deep data science, vAuto helped over 14,000 dealers sell 23 million vehicles last year alone.

Read The Power of Data in an Evolving Automotive Market to discover how vAuto’s data and solutions empower dealers to make informed decisions and optimize the investment value of every vehicle.

Looking ahead: Later this week, the Cox Automotive Industry Insights team will report on quarterly market performance for Nissan Motor Corporation and Honda Motor Company. New and used inventory levels and average listing prices from vAuto data will be published. Plus, we will report the October Dealertrack Credit Availability Index.

Next week, check back in the Newsroom for the October Kelley Blue Book average transaction price report, as well as the October Cox Automotive/Moody’s Analytics Vehicle Affordability Index.