Here’s a summary of the content:
Key Points on Used Vehicle Market Trends
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Affordability and Financing Shifts: As affordability pressure increases, dealerships need to adapt their inventory strategies heading into Q4. On a recent episode of CBT Live, Derek Hansen from Cox Automotive discussed these dynamics.
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Market Resilience: Despite challenges, the used vehicle market in 2026 remains resilient. However, there is a noticeable shift in demand towards vehicles that consumers can finance more comfortably.
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New Vehicle Sentiment Decline: Average new car prices have exceeded $50,000, causing consumers to lean towards late-model used cars. Supply of these vehicles is limited due to reduced production during the pandemic.
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Inventory Management: The focus should shift from total inventory to ensuring supply in the fastest-moving price bands. Many dealers are sourcing vehicles through service drives and CRMs, which can potentially increase profits.
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Action Recommendations:
- Dealers are encouraged to reassess inventory toward high-demand price bands.
- It’s crucial to maintain vehicle turnover outside these bands by employing effective pricing and marketing strategies that communicate affordability.
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