Cox - Auto Market Report, Aug 23

The Cox Automotive Auto Market Report for August 15, 2023, reveals key insights into the automotive industry. Consumer spending exhibited robust growth, with a noteworthy 12% year-over-year (y/y) increase in late July. Sectors like travel, recreation, and services were particularly strong contributors to this growth. Retail sales displayed mixed patterns; while new retail sales soared by 23% compared to 2022, they saw a slight 0.5% week-over-week (w/w) decline. Used retail sales, however, registered a solid 2.6% y/y increase and a 0.4% w/w uptick. Auto loan rates saw an upward trajectory in August, averaging 9.48% for new vehicles and 13.76% for used ones. In terms of supply, new vehicle availability increased by 17 days y/y and 2% w/w, whereas used vehicle supply dropped by 6 days y/y but remained steady w/w. Used vehicle prices experienced fluctuations, with the average wholesale price for Model Year 2020 vehicles dipping by 0.1% over the past week, and the average retail price declining by 0.5%. Leading indicators conveyed mixed signals: leads on platforms like Autotrader and Kelley Blue Book were down y/y in August but showed improvement compared to July. Credit applications on Dealertrack decreased by 3% y/y, though unique applications on a same-store basis displayed an upward trend. Xtime service trends declined compared to the prior year, yet completed appointments saw a 1% y/y uptick. In summary, the report underscores robust consumer spending, varying retail sales trends, rising auto loan rates, shifts in vehicle supply, and fluctuations in used vehicle prices. Leading indicators provide insights into leads, credit applications, and service trends, reflecting a complex landscape within the automotive market.