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Midweek Auto News Summary


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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.

Before heading into the Thanksgiving break, we are serving up a smorgasbord of the latest data and insights from Cox Automotive. In the Auto Market Report published this morning, Chief Economist Jonathan Smoke said, “Spending on vehicles was up a robust 13% year over year, according to the latest data. The consumer has not thrown in the towel. And the consumer is hanging in there more broadly in the economy, and we can be thankful that.”

Catch up quickly by watching two additional videos published yesterday from the Cox Automotive Industry Insights team and Manheim Market Insights.  
 
Since the last newsletter, Cox Automotive reported new-vehicle average transaction prices from Kelley Blue Book and October new-vehicle inventory and listing prices and used-vehicle inventory and listing prices from vAuto. We also posted our mid-month Manheim Used Vehicle Value Index and key findings from a Cox Automotive Mobility study on consumers’ knowledge of the Inflation Reduction Act of 2022 and the new electric vehicle tax credits.
 
In this season of gratitude, we are thankful you turn to Cox Automotive for all the latest data and insights, and we hope you find this installment informative and helpful. Visit the
 Cox Automotive Newsroom for the latest on the industry’s most important topics, and bookmark the Auto Market Snapshot, a one-stop dashboard for the data our team is tracking.
 
Thank you for reading and for your interest in Cox Automotive. We wish you and your loved ones a very Happy Thanksgiving!

NEW-VEHICLE DEMAND MODESTLY IMPROVES WHILE USED SLIGHTLY DECLINES
 
Heading into the final week of November, data show new-vehicle sales modestly improving and used-vehicle sales slightly declining, according to Chief Economist Jonathan Smoke in his Thanksgiving edition of the Auto Market Report video published this morning. The story on the new side is improving supply. The story on the used side is pressure from affordability and higher interest rates.

For additional context, check out the Cox Automotive/Moody’s Analytics Vehicle Affordability Index and the Dealertrack Credit Availability Index.
 
Read the Auto Market Weekly Summary and watch the Auto Market Report video for more data and insights from Smoke on consumer sentiment, new and used retail sales and inventory, plus Cox Automotives leading indicators.

MONTHLY INDUSTRY UPDATE VIDEO HIGHLIGHTS THE LATEST MARKET DATA AND FINDINGS FROM THE EV TAX CREDIT STUDY
 
In Episode 7 of the Monthly Industry Update, Cox Automotive Executive Analyst Michelle Krebs is joined by Research Manager Rebecca Rydzewski, Research Manager Quentin Wallace and Mobility Research and Market Intelligence Manager Kayla Reynolds. The 15-minute presentation covers both the new- and used-vehicle markets and highlights a new study on the EV tax credits included in the Inflation Reduction Act of 2022.
 
Watch the latest video published yesterday for a review of the market data tracked by Cox Automotive and study findings on consumer perceptions of the new EV tax credits.

WHOLESALE USED-VEHICLE PRICES MODESTLY INCREASE IN FIRST HALF OF NOVEMBER
 
Wholesale used-vehicle prices increased by 0.4% in the first 15 days of November compared to October. The mid-month Manheim Used Vehicle Value Index rose to 200.7, which was down 13.7% from the full month of November 2021. The non-adjusted price change in the first half of November was a decline of 0.8% compared to October, moving the unadjusted average price down 11.7% year over year. 
 
See the Data Point for additional details, including price changes for major segments and rental risk units.
 
Watch the monthly Manheim Market Insights video published yesterday to hear thoughts from Kevin Chartier, vice president of Manheim Market Insights, on the used wholesale and retail markets.

CONSUMERS PAY MORE FOR NEW VEHICLES IN OCTOBER, ACCORDING TO KELLEY BLUE BOOK AVERAGE TRANSACTION PRICE DATA
 
The average price paid for a new vehicle in the United States in October 2022 was $48,281, up from September but slightly below the all-time high set in August, according to recent data released by Kelley Blue Book.
 
The average price paid for a new non-luxury vehicle in October was $44,288, up $142 month over month while the average luxury buyer paid $66,645 for a new vehicle, up $331 from September.

 
Check out the Data Point to learn more, including information on the luxury market share and incentives.

NEW-VEHICLE INVENTORY REBOUNDED IN OCTOBER WHILE PRICES STAYED HIGH; USED-VEHICLE ASKING PRICES FELL
 
New-vehicle inventory closed October at its highest level since May 2021, and prices stayed high, according to Cox Automotive’s analysis of vAuto Available Inventory data. The average listing price – or the asking price – was $46,317 at the end of October, up slightly from a revised $46,212 at the end of September. Read the Data Point for details on the new-vehicle market.
 
On the used-vehicle side, asking prices fell throughout the month of October to their lowest average since April as inventory matched pre-pandemic 2019 levels. The average listing price was $27,564 at the end of October, down from the revised $28,266 at the end of September.
Learn more in the used-vehicle Data Point.

THE INFLATION REDUCTION ACT OF 2022: STUDY REVEALS CONSUMER PREVENTION OF REVAMPED EV TAX CREDITS
 
The Inflation Reduction Act (IRA) of 2022 is a far-reaching collection of legislation that was signed into law by President Biden on August 16, 2022. For the auto industry, a key element of the act is a reshaping of electric vehicle (EV) tax credits in the U.S. and a collection of new sourcing requirements.​
 
To find out how much consumers know about the IRA and what they think about the new EV tax credits, our Cox Automotive Mobility research team recently surveyed 1,000 consumers. The survey participants were a wide set of EV owners, owners of traditional combustion-powered vehicles and some who did not own a vehicle at all.

 
Check out a high-level overview of consumer knowledge of the new tax credits, if the tax credit encourages adoption, where consumers feel they should be getting information about EV tax credits and where in the purchase process they expect the credit to come into play.
 
ICYMI:
See the Q3 Kelley Blue Book Brand Watch™ findings on electrified vehicles, including the Top 10 most shopped green machines. 

REGISTER TODAY: 2023 INDUSTRY INSIGHTS AND FORECAST CALL, JAN. 12, 2023

Join us for the 2023 Cox Automotive Industry Insights and Forecast Call hosted by Chief Economist Jonathan Smoke, Senior Economist Charlie Chesbrough and the Industry Insights team on Thursday, January 12, at 11 a.m. EST. As a new year dawns for the automotive industry, the team will give a deep dive into the economy and auto industry, covering the new, used and wholesale vehicle markets for 2022. They will also reveal 2023 Cox Automotive forecasts and some predictions and trends to watch in the year ahead.

REGISTER TO ATTEND  
Looking ahead: Cox Automotive will publish its November U.S. auto sales forecast on Monday, November 28. Once automakers report their sales on Thursday, December 1, we will provide some additional Sales Day commentary.
 
November fleet sales will be reported on Tuesday, December 6 followed by the November Manheim Used Vehicle Value Index on December 7.
 
If you have questions or want to connect with the
 Cox Automotive PR team in the meantime, feel free to contact us.
AUTO QUOTES
 
“Consumers expect dealers to educate them on what the Inflation Reduction Act is, what is included in it regarding EV tax credits, and when it can be used during the vehicle shopping process. Point-of-sale changes coming in 2024 will be especially important for dealers to explain during the coming year.”
 
– Kayla Reynolds, manager, mobility research and market intelligence, Cox Automotive, presenting key findings from the Inflation Reduction Act of 2022 EV Tax Credit Study.
 
 

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