Cox Automotive’s latest Auto Market Report found that U.S. consumer sentiment decreased in June, although it is showing signs of recovery in the early part of July — which the company says reflects “cautious optimism.”
The data also shows rising momentum when it comes to used vehicle sales and service activity, while new vehicle sales remain steady. And loan rates are slowly moving away from historic highs, giving way to a low-interest financing comeback.
On consumer behaviour, June data shows a leveling off. Cox Automotive’s Chief Economist Jonathan Smoke translated the data and trends into insights and found the information suggests that consumers are adjusting to inflation and interest rate dynamics.
As for retail sales, the report says trends remain steady overall. Used vehicle sales showed a slight uptick in early July, new-vehicle sales held firm in June (thanks in part to improved inventory and incentives), and dealer leads are up year-over-year on Autotrader — though down on Kelley Blue Book. The report described the data as indicating “platform-specific engagement shifts.”
Finally, data around inventory levels and pricing trends suggest the market is finding its equilibrium. In a nutshell: “New-vehicle supply has increased over the past month, while used supply remains steady,” the report reads. It also adds that “retail prices for 2022 model-year vehicles declined 0.2 per cent, and wholesale prices fell 0.3 per cent — a normal seasonal pattern.”
