Auto Insider Report
Report Introduction & Methodology
The Auto Insider Report July 2017 is our analysis and insight of the current state of the automotive industry.
This report is based on hundreds of millions of data points collected daily on nearly 100% of new cars on dealers’ lots – over 4 million cars (and counting) – across nearly all makes and models. This level of real time market intelligence is unprecedented in our industry and unique to Carjojo’s technology. The aim of our report is to highlight key industry trends – days, even weeks – before any other source is made public. Here we’ll highlight automotive sales and inventory month-to-month. All data is based on dealer inventory counts and vehicles sold by dealers.
If you have any questions or comments about this report, please feel free to contact us at email@example.com.
Thank you and enjoy,
– Carjojo Team
July Inventory Down As Dealers Make Way For The Arrival Of 2018 Models
Inventory levels have been trending downwards since the start of the summer – a common sign of the times and a seasonal guarantee in the world of car making and dealing.
Month-over-month, most brands reflected this inventory loss. Including, Ford (-6.76%), Honda (-10.8%), Kia (-1.04%), Nissan (-0.57%) and Toyota (-4.67%).
At General Motors, inventory dropped 8.15 percent for Buick, 3.33 percent for Cadillac, 1.14 percent for Chevrolet and 4.02 percent for GMC.
Sales for GM in July was not much better, save for GMC, which sold nearly 5,000 more units in July than it did in June (+11.58%), but is down in sales since the start of the year by 12.58 percent.
Buick sales were down 7.73 percent from June to July, Cadillac was down 22.68 percent and Chevrolet was down 3.06 percent.
Luxury Brands Take a Big Hit, Others Hold Strong
Inventory counts for a few major luxury brands, much like other makes, were down last month. Among high-end automakers, July also proved to be a slow month for sales.
BMW was down 3.40 percent, Jaguar was down half of a percentage point (0.50%) and Mercedes-Benz had 5,993 fewer vehicles available for purchase (-10.54%) in July than it did in June.
Among these high-end automakers, July also proved to be a slow month for sales. From June to July, BMW sales were down by 11.86 percent, which equated to 2,367 fewer vehicles sold. Since January, sales are down a total of 3 percent for the German automaker.
Mercedes-Benz sales were down month-over-month by 21.05 percent and since the start of January by 10.43 percent. Jaguar sales were down 1.60 percent from June to July.
Audi, down 3.05 percent, Land Rover, down 14.99 percent, and Porsche, down 27.05 percent. Inventory levels were up for Land Rover and Porsche, 0.72 percent and 5.16 percent respectively – a positive sign despite the downed inventory levels across the U.S. and across most automakers.
Japanese automakers, Mitsubishi, Subaru, and Toyota, were three of the few to post positive sales results for last month. Mitsubishi sold 1,021 more cars last month than it did in June, an increase of 12.92 percent. Subaru sales were up 5.04 percent month-over-month and Toyota sales increased by 7.68 percent from June to July.
Incentives Needed for Second Half Spending
Analyst predicts sales in the second half of the year will be largely driven by dealer incentive offers. Despite down sales last month, J.D. Power and Associates estimated average incentives to be $3,876 per new vehicle in the first 18 days of sales in July, a high for the month and an increase of 7.8 percent from the record set in July last year. The average vehicle on Carjojo sells for $1,500 less than prices listed on other new car buying websites.
Despite the attractive offers, sales in July remained largely flat, or down.
But even with slowing sales and a focus on savings, automakers have posted strong profits. This can mostly be attributed to the average increase per transaction and the steady trend to buy crossovers and small SUVs instead of less expensive car options.